Greece is getting another $229Bn at 3.5% with about 30 years to pay it from the EU(ie. Germany and France) and private bond-holders will share about 1/3 of the pain by "voluntarily" renegotiating their own notes. Sounds like a really great offer, right? BUT WAIT, THERE’S MORE! Another $630Bn of already promised emergency aid has now been places into a very slushy fund that will now allow the EU to throw money at any nation that so much as sneezes – WHETHER OR NOT THEY ASK FOR ASSISTANCE. This will allow them to play economic Whack-A-Mole, putting out all the little Euro-zone fires until that money runs out (about 6 months at the EU’s current burn rate).
All this fantastic news from Europe has sent the Dollar down to test the 74 line and that was down from 75.37 just ahead of yesterday’s open and that’s a 1.8% drop so we would expect our indexes to go up at least 1.8% – BUT – none of them did. In fact, the Nasdaq only gained 0.72% and the Russell was up 1.07% and the Dow was up 1.21% and the S&P was up 1.35%. The NYSE, which had been our perennial laggard, did the best yesterday – gaining a close, but still no cigar 1.57%.
Will we make it up today or is this an indication that things may not be quite so good as they seem? After the close yesterday, I did a news round-up for our Members and there is still plenty to worry about and we took a stab at some SPY Weekly (today) $135 puts at .79 for our aggressive $25K Virtual Portfolio on the off-chance they "fix" the US debt ceiling and accidentally make the Dollar strong again. At the moment, we are still playing our short lines in the futures, where we’ve been scalping nickels and dimes since my 3:23 am Alert to Members (if you are not a Member, you can sign up here), where I said:
I like shorting the Futures here: S&P (/ES) at 1,346, Nas (/NQ) 2,415, Dow (/YM) 12,720 and Rut (/TF) 842.6 – as long as 74.20 hold on the Dollar, we should get a bit of a sell off so these are levels to look for as the Dollar heads
Following a rollercoaster night for the Japanese Yen, when following several media headlines Abe was said to have announced a stimulus package that would be more than JPY28 trillion, which however upon more careful reflection appeared less then met the eye (more in a subsequent post), Japanese stocks surged 1.7% while the USDJPY spiked but well off overnight highs, pushing risk assets higher.
Offsetting Japan's exuberance was a sharp drop in Chinese stocks, which tumbled the most in 6 weeks, however closing well off the lows, down -1.9% after the 21st Century Business Herald rep...
By Jacob Wolinsky. Originally published at ValueWalk.
Bridgewater Associates is in the news again and yet again not for the reasons Ray Dalio and crew would prefer. The latest is a sexual harassment allegation from a Christopher Tarui. Tarui is described as a “34-year-old adviser to large institutional investors in Bridgewater” and he claims that a male supervisor harassed him. Specifically:
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On one occasion, he said, his supervisor confided in him that he had an ...
US equity indexes traded in a narrow range today and finished mixed ahead of Fed Wednesday. Our benchmark S&P 500 exhibited a bit of volatility in the first 90 minutes, hitting its intraday high and low about an hour apart. The index then struggled with yesterday's closing price during the lunch hour and again at the close. It managed to eke out a 0.03% gain as we move toward tomorrow's FOMC minutes and rate decision, expect by most analysts to remain unchanged.
The yield on the 10-year closed at 1.57%, down one basis point from the previous session.
Here is a snapshot of past five sessions in the S&P 500.
Here is a daily chart of the index. We've highlighted the unusually narrow pattern over the past nine sessions, b...
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After a three-year bull run that more than quadrupled its value by its peak last July, IBD’s Medical-Biomed/Biotech Industry Group plunged 50% by early February, hurt by backlashes against high drug prices and mergers that seek to lower corporate taxes.
This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible. Feel free to contact me directly at firstname.lastname@example.org with any questions.
Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts. After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.) Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.
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