The RealMoney contributors are in the business of trading and investing all day on the basis of ongoing news flow. Below, we offer the top five ideas that RealMoney contributors posted today and how they played those ideas.TheStreet.com brings you the news all day, and with RealMoney's "Columnist Conversation," you can see how the pros are playing it on a real-time basis. Here are the top five ideas played today. To see all that RealMoney offers, click here for a free trial.
Out of Trading Shorts and Into Small Longs
By Doug Kass
1:23 p.m. EDT I am a buyer of what represents value and a seller of what represents merchandise that is dear. As one who does not worship at the altar of price momentum, I am seeing some developing values in the market.
Commodity Swap Bumps and Bruises
By Howard Simons
11:59 a.m. EDT There has been some mention made of how rogue traders and fat-fingered mistake-makers can wreak havoc with the economics of fuel users. This is only true at the narrowest of margins. A typical fuel hedge contract is a geometrically weighted index swap where the index itself is a formula based on a basket of competing fuels. The geometric weighting scheme minimizes the impact of one-day outliers. As a refresher, an arithmetic average over 10 days is the sum of the 10 prices divided by 10. A geometric average is the product of the 10 prices taken to the tenth root. If anyone decides to buy or sell an airline stock based on some overnight goofball's trading miscue, please do so and end my search for this year's Darwin Award winner. No positions.
Now It Gets Interesting
By Tim Melvin
11:03 a.m. EDT Earnings season is upon us. I know the official earnings season kicks off on Wednesday with the Alcoa ( AA) report, but there are some reports tomorrow worth monitoring as well. Ruby Tuesday ( RT) and International Speedway ( ISCA) both report on Tuesday, and they are great discretionary spending tells. Casual dining is bad and getting worse as near as I can tell. I am short several names (using put spreads since I am a chicken short) in the space and have been all year. NASCAR-related spending is way down and I expect that to be reflected in International Speedway's numbers.
By Adam Feuerstein
10:59 a.m. EDT AMAG Pharmaceuticals ( AMAG) shares spiked because the launch price of Feraheme was released by third-party providers and it's higher than the Street was expecting -- a good thing! The Street was generally modeling a roughly 20% pricing premium for Feraheme over its competitors, but AMAG is pricing the drug at a 40% premium, according to JPMorgan Chase ( JPM) analyst Matt Roden. No positions.
Corporate Bonds Weak
By Tom Graff
10:37 a.m. EDT Corporate bonds are weaker this morning on light activity. I'm hearing there are few aggressive sellers, but those who do want to lighten up are finding soft bids. Bank paper is 10 wider with most other sectors 0-5 wider. In credit ETFs, iShares iBoxx High-Yield Corporate ( HYG) and SPDR Barclays Capital High-Yield Bond ( JNK) are both down over 1%. The iShares iBoxx Investment Grade Corporate Bond Fund ( LQD) is in line with Treasury bonds. Long LQD.
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