I will post the chart Monday AM.
Other watch. UNG falling knife, DOW TRANS new 52 week low and RSI non confirm watch, XLF for bottom watch, USO bottom watch, PFF preferred ETF bottom watch, GLD breakout as well
1/24/09
1/23/09
SPX Ranges for Monday
SPX 840 is still tough resistance
Nice up day for sectors XLK +1.4% XLF +3% XLE +2.8% XLB +1.8%
Naz +.8% and the DOW -.6% on UTX, CAT and GE drops
SPX 839 here Critical test to see if this rally can continue
Morning headfake down....afternoon headfake up? looking that way
SPX Daily
Keep your eyes peeled for this STO on the daily closing above 20. 840 is res that needs to be broken but it's a positive if the STO can close today above 20
If we get below 815 - 820 look for another 250 drop in the DOW
NAZ is up 5 pts here DOW (mainly GE's help) - 106 and SPX -3 or .3%
Russell 1,000 Stocks With The Highest and Lowest Short Interest
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Finally! Now Get our Money Back Obama!
John Thain Called Out By The President
We're not sure how John Thain is feeling about being called out by the President this morning. For some background, most readers are aware of yesterday's report from CNBC's Charlie Gasparino on how Mr. Thain spent $1.2 million to renovate his office at Merrill Lynch last year. This came during a time when the firm was already on the skids and laying off employees. It appears as though President Obama saw the story too, because in comments this morning, he basically said that it is unacceptable for companies receiving government aid to be renovating 'offices and bathrooms.' President Obama must be even more surprised with the fact that he paid the same designer eight times less for his work on the White House ($100K) than Thain paid him to do his office ($837K). Since when does the government get better deals than the private sector?
John Thain could be thinking he must be pretty important if even the President of the United States is talking about him. But most likely, Mr. Thain is shaking in his boots. When the President of the United States calls out your actions as a symbol of greed and what's wrong with Wall Street, you may want to think twice about taking the Bentley when you go out 'antiquing' this weekend.
Who would have thought that Merrill Lynch would already have an ex-CEO that is less popular than Stan O'Neal? Somewhere out there, Mr. O'Neal is saying, "Thank God for John Thain!"
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We're not sure how John Thain is feeling about being called out by the President this morning. For some background, most readers are aware of yesterday's report from CNBC's Charlie Gasparino on how Mr. Thain spent $1.2 million to renovate his office at Merrill Lynch last year. This came during a time when the firm was already on the skids and laying off employees. It appears as though President Obama saw the story too, because in comments this morning, he basically said that it is unacceptable for companies receiving government aid to be renovating 'offices and bathrooms.' President Obama must be even more surprised with the fact that he paid the same designer eight times less for his work on the White House ($100K) than Thain paid him to do his office ($837K). Since when does the government get better deals than the private sector?
John Thain could be thinking he must be pretty important if even the President of the United States is talking about him. But most likely, Mr. Thain is shaking in his boots. When the President of the United States calls out your actions as a symbol of greed and what's wrong with Wall Street, you may want to think twice about taking the Bentley when you go out 'antiquing' this weekend.
Who would have thought that Merrill Lynch would already have an ex-CEO that is less popular than Stan O'Neal? Somewhere out there, Mr. O'Neal is saying, "Thank God for John Thain!"
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Fed’s Agency MBS Purchases Total $52.6 Billion(housingwire.com)
The Federal Reserve purchased more than $19 billion in agency mortgage-backed securities from government-sponsored entities Freddie Mac (FRE: 0.6544 -0.85%), Fannie Mae (FNM: 0.65 -1.52%) and Ginnie Mae in the week ending Jan. 21. The latest installment brings total agency MBS purchases to $52.6 billion, little more than a tenth of the Fed’s $500 billion purchasing power under the program, which was announced Nov. 25, 2008."
1/22/09
SPX and OBV
The last OBV uptrend breakdown saw a huge drop in the market. Although a break is not quite at hand, we should watch for this new SPX OBV uptrend for signs of weakness...
Two swing trades today...going for the third
830 is trying to hold..DOW -114 after basically getting back to unch...lots of land mines
75% Of Latest Bank Of America Bailout Used To Pay Merrill Lynch Bonuses (BAC)
75% Of Latest Bank Of America Bailout Used To Pay Merrill Lynch Bonuses (BAC)
Henry Blodget | Jan 22, 09 6:22 AM
Remember the latest Bank of America (BAC) bailout, the one we were all so steamed about last week? (The $20 billion of cash and $100+ billion of trash-asset guarantees that absolutely had to be given or else Bank of America shareholders might have lost everything?)
Yes, well, you probably thought that that cash would be used to bolster the bank's capital or something. (We know you weren't dumb enough to think it might have been used to make loans).
Alas, it wasn't used for that. It was used to pay Merrill Lynch executives the huge bonuses they deserved for unloading their balance sheet on for-some-reason-not-yet-fired Bank of America CEO Ken Lewis.*
Has change really come to America? We'll believe it when we see it.
Henry Blodget | Jan 22, 09 6:22 AM
Remember the latest Bank of America (BAC) bailout, the one we were all so steamed about last week? (The $20 billion of cash and $100+ billion of trash-asset guarantees that absolutely had to be given or else Bank of America shareholders might have lost everything?)
Yes, well, you probably thought that that cash would be used to bolster the bank's capital or something. (We know you weren't dumb enough to think it might have been used to make loans).
Alas, it wasn't used for that. It was used to pay Merrill Lynch executives the huge bonuses they deserved for unloading their balance sheet on for-some-reason-not-yet-fired Bank of America CEO Ken Lewis.*
Has change really come to America? We'll believe it when we see it.
SPX at 60 min upper channel again
STO and MACD look promising for continuation but 830 is a res level
The New guy in charge of the Treasury knowingly cheated on his taxes
IS NOW IN CHARGE OF THE IRS... Great call Obama...yes we can't
Geithner approved by Senate panel for Treasury Secretary
WASHINGTON (MarketWatch) -- The Senate Finance Committee voted Thursday to approve the nomination of Timothy Geithner to be Treasury Secretary. The vote was 18 to 5. Several Republicans said they could not vote for him because of errors on his tax returns uncovered by the committee. Sen Jon Kyl, R-Ariz., said he did not believe Geithner was candid with the panel. But Democrats unanimously backed Geithner. Sen. Charles Schumer, D-N.Y., said Geithner would be an able navigator through "troubled, dangerous and uncharted waters." The nomination now goes to the full Senate floor, and is expected to be cleared easily.
Geithner approved by Senate panel for Treasury Secretary
WASHINGTON (MarketWatch) -- The Senate Finance Committee voted Thursday to approve the nomination of Timothy Geithner to be Treasury Secretary. The vote was 18 to 5. Several Republicans said they could not vote for him because of errors on his tax returns uncovered by the committee. Sen Jon Kyl, R-Ariz., said he did not believe Geithner was candid with the panel. But Democrats unanimously backed Geithner. Sen. Charles Schumer, D-N.Y., said Geithner would be an able navigator through "troubled, dangerous and uncharted waters." The nomination now goes to the full Senate floor, and is expected to be cleared easily.
SPX 812
Getting to a critical area IMO, 804 needs to hold for the bulls.
Sharp trade down to bottom of the channel is definitely a possibility
RIMM set up
For sure a great run in this market. However now watching for a short set up mainly using the RSI...not there yet
Market Teaches Lesson #2.. http://market-ticker.denninger.net/
Yesterday saw the "greed" side of the "fear and greed" equation on Wall Street.
What set off a 14.7% rally in the XLF - the very same financial sector that got destroyed the previous day?
The following:
President Obama said in a loud, clear voice that the policy of obfuscation was over - that FOIAs and similar requests were going to be handled with a bias toward approval, not "hiding things."
Insiders at JP Morgan and Bank America bought shares
There was a statement out of Europe hinting that there may be intervention in the Pound if it continued to get destroyed.
All three combined to produce a powerful rally as people ran for the exits of what had been very profitable trades. Greed? Or fear of being trapped by yet another rule change?
Does it matter? To use one word: YES.
The market doesn't move in this sort of fashion if it is healthy. The distrust in our financial markets is the stuff that books will be written about down the road - assuming our Republic survives.
But in the meantime, the market sent a powerful signal that while fear and greed continue to be the driving forces, neither holds the upper hand today, and yet confidence - the key element in all financial markets - remains absent.
How do we restore confidence?
President Obama took an important baby step with his speech Wednesday, promising more transparency.
What set off a 14.7% rally in the XLF - the very same financial sector that got destroyed the previous day?
The following:
President Obama said in a loud, clear voice that the policy of obfuscation was over - that FOIAs and similar requests were going to be handled with a bias toward approval, not "hiding things."
Insiders at JP Morgan and Bank America bought shares
There was a statement out of Europe hinting that there may be intervention in the Pound if it continued to get destroyed.
All three combined to produce a powerful rally as people ran for the exits of what had been very profitable trades. Greed? Or fear of being trapped by yet another rule change?
Does it matter? To use one word: YES.
The market doesn't move in this sort of fashion if it is healthy. The distrust in our financial markets is the stuff that books will be written about down the road - assuming our Republic survives.
But in the meantime, the market sent a powerful signal that while fear and greed continue to be the driving forces, neither holds the upper hand today, and yet confidence - the key element in all financial markets - remains absent.
How do we restore confidence?
President Obama took an important baby step with his speech Wednesday, promising more transparency.
Another Freaking Gap open Down 2%
Gap and trades down to trend line but not violated MACD cross, not yet...could be buy the dip (I don't know why... :) )
1/21/09
SPX hits top of channel
Reminds me of when CFC FNM SLM FRE WA were jerking around up 50% down 50%....thanks to the Trsy and FED
XLF +11% but FAS the 3X only up 20% XLE +5.2% on +8% oil
815 SPX is trying to hold - turned back at 824
DOW 8000 as well. XLF off high now +5% XLE XLK up over 2%
News
US Stocks Open Higher On IBM Outlook
U.S. stocks show sharp early gains with International Business Machines' positive 2009 guidance offering encouragement to the broader market after Tuesday's banking sector plunge led to a 332-point drop in the Dow. The DJIA is up more than 120 points.
US Stock Futures Higher On IBM Outlook
U.S. stock futures pointed to a higher start on Wednesday, with International Business Machines' guidance offering respite after the last session's banking sector plunge.
IBM's guidance "is giving the stock a lift and is slightly encouraging to the broader market, although there are a lot more earnings yet to be reported," said Marc Pado, U.S. market strategist at Cantor Fitzgerald.
S&P 500 futures rose 8.6 points to 814.6 and Nasdaq 100 futures rose 5 points to 1152.75. Dow industrial futures rose 75 points to 8019.
U.S. stocks dropped sharply Tuesday, with the financial sector skidding as investors panicked at the likelihood that banks needed more capital without an easy way to get it. The Dow Jones Industrial Average, in its worst-ever performance on Inauguration Day, skidded 332 points, the S&P 500 lost 38 points and the Nasdaq Composite dropped 88 points.
IBM rose 5% in pre-open trading as the technology bellwether forecast 2009 earnings of at least $9.20 a share, compared with analyst expectations around $8.70 a share. IBM's fourth-quarter profit rose 12%.
"While the shares may remain range-bound for several quarters pending a resumption of revenue and profit growth in the second half, current valuation looks attractive at 9 times our revised 2009 EPS estimate," said analysts from Citigroup.
Telecom-equipment maker Ericsson climbed nearly 14% after announcing a 31% profit drop and 5,000 jobs cuts.
Also on the earnings front, fund manager BlackRock fell 5.5% after reporting a 84% profit drop, while Dow industrials component United Technologies said fourth-quarter profit rose 8%. After the close, Apple and eBay will unveil results.
While earnings will attract attention, the financial sector will be back in the spotlight after the 17% dive in the sector on Tuesday.
Insurer Hartford rose 5.3% in pre-market trade and Citigroup added more than 11%. Three-month dollar Libor (London Interbank Offered Rate) edged up to 1.125% from 1.225%.
The confirmation hearing for Timothy Geithner also will be a spotlight. His top job will be to explain to Senators why the previous $700 billion fix of the financial sector didn't work and more funds are required to clean up the mess. Geithner also didn't pay all of his self-employment and Medicare taxes during the years that he worked at the International Monetary Fund.
Elsewhere, gold futures fell and oil futures rose in electronic trading. "Longer term, a combination of devalued currencies, growing global incomes and a renewed appreciation for gold should keep prices higher. Essentially, a long gold view now is a view that inflation will be higher than what central banks are suggesting they are willing to accept," said analysts from Morgan Stanley.
The British pound was battered again, and most overseas markets dropped as financials skidded overseas as well. The Nikkei 225 dropped 2% in Tokyo and the FTSE 100, in afternoon trade, dropped 0.8% in London.
U.S. stocks show sharp early gains with International Business Machines' positive 2009 guidance offering encouragement to the broader market after Tuesday's banking sector plunge led to a 332-point drop in the Dow. The DJIA is up more than 120 points.
US Stock Futures Higher On IBM Outlook
U.S. stock futures pointed to a higher start on Wednesday, with International Business Machines' guidance offering respite after the last session's banking sector plunge.
IBM's guidance "is giving the stock a lift and is slightly encouraging to the broader market, although there are a lot more earnings yet to be reported," said Marc Pado, U.S. market strategist at Cantor Fitzgerald.
S&P 500 futures rose 8.6 points to 814.6 and Nasdaq 100 futures rose 5 points to 1152.75. Dow industrial futures rose 75 points to 8019.
U.S. stocks dropped sharply Tuesday, with the financial sector skidding as investors panicked at the likelihood that banks needed more capital without an easy way to get it. The Dow Jones Industrial Average, in its worst-ever performance on Inauguration Day, skidded 332 points, the S&P 500 lost 38 points and the Nasdaq Composite dropped 88 points.
IBM rose 5% in pre-open trading as the technology bellwether forecast 2009 earnings of at least $9.20 a share, compared with analyst expectations around $8.70 a share. IBM's fourth-quarter profit rose 12%.
"While the shares may remain range-bound for several quarters pending a resumption of revenue and profit growth in the second half, current valuation looks attractive at 9 times our revised 2009 EPS estimate," said analysts from Citigroup.
Telecom-equipment maker Ericsson climbed nearly 14% after announcing a 31% profit drop and 5,000 jobs cuts.
Also on the earnings front, fund manager BlackRock fell 5.5% after reporting a 84% profit drop, while Dow industrials component United Technologies said fourth-quarter profit rose 8%. After the close, Apple and eBay will unveil results.
While earnings will attract attention, the financial sector will be back in the spotlight after the 17% dive in the sector on Tuesday.
Insurer Hartford rose 5.3% in pre-market trade and Citigroup added more than 11%. Three-month dollar Libor (London Interbank Offered Rate) edged up to 1.125% from 1.225%.
The confirmation hearing for Timothy Geithner also will be a spotlight. His top job will be to explain to Senators why the previous $700 billion fix of the financial sector didn't work and more funds are required to clean up the mess. Geithner also didn't pay all of his self-employment and Medicare taxes during the years that he worked at the International Monetary Fund.
Elsewhere, gold futures fell and oil futures rose in electronic trading. "Longer term, a combination of devalued currencies, growing global incomes and a renewed appreciation for gold should keep prices higher. Essentially, a long gold view now is a view that inflation will be higher than what central banks are suggesting they are willing to accept," said analysts from Morgan Stanley.
The British pound was battered again, and most overseas markets dropped as financials skidded overseas as well. The Nikkei 225 dropped 2% in Tokyo and the FTSE 100, in afternoon trade, dropped 0.8% in London.
XLF up 4% Pre market... SPX Up 1.6%
This makes me think the SPX 60 min RSI non confirmation (prior post) may play today.
Resistance at 830 then 858 today
Resistance at 830 then 858 today
1/20/09
$QRGI - the Bailout Index
in 20 days... from 1000 to 584... and us, the taxpayer are supposed to get our money back... what century?
I'd post the chart but stockcharts has not put it up yet
I'd post the chart but stockcharts has not put it up yet
Will the Feds Buy the market today or Wednesday
You know they don't want a Market disaster on Obama's 1st day...oh, I forgot Paulson is gone...and the New Tresy guy is trying to pay back taxes..
Financials ass raped Dow -270 XLF -14%
Vix ready to bust, 817 doesn't hold on the SPX....one hour to go...good news is we are near oversold on the technicals (although the daily charts are not OS)
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