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Posts Tagged ‘WM’

Stock Market Crash - Year One in Review - The Gathering Storm

Happy anniversary market crash! 

One year ago, in September, the market started falling in earnest.  A lot of people were caught by surprise by that drop as many thought we had just had a major correction and the worst was over.  We had bounced off 10,800 on July 14th and had made it all the way back to touch 12,000 on August 14th but that day I warned my members in the morning post:

We’re really through the looking glass when you see investors stampede right back into oil and other commodity stocks at the first sign of a bounce off a 20% drop.  I guess they’ve never seen a pullback off 20% before so it makes sense that Cramer would hit the BUYBUYBUY button on anything that smells like crude.  I wish I had access to the tapes of all these same idiots telling you to BUYBUYBUY housing stocks and mortgage companies when they made their first bounce on the way to 80% losses.

It’s not just oil that is expensive, now it has to compete for consumer dollars with food and airline fares and tobacco prices and consumer goods etc.  Oil was able to bubble up because people were enjoying a robust economy and it was the ONLY thing that was rising out of control.  Metals began to follow it as that didn’t affect the average person but then companies had to start passing on the increased costs and the banks stopped lending money and the consumers were forced to stop using their home’s equity (if there was any left) like a piggy bank and *poof,* suddenly there isn’t enough money for oil.  This isn’t going to change because there’ s a hurricane or a shut down pipeline or anything else.

Oil was trading at a still ridiculous $115 a barrel that day, down from $147 on July 1st but still choking the life out of the economy.  We were very bearish on oil and natural gas ($14 at the time) as the fundamentals simply didn’t support the price of oil at $115 as much as they didn’t support $147 a month earlier.  I had gone negative on oil too early though, as we thought $120 was surely the top back in May.  Sometimes fundamentals can get you too ahead of the market.  Our man Ben was between a rock and a hard place as he HAD to do something to bring down oil prices before the entire economy came to a screaming…
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Phil's Favorites

IS CONGRESS ABOUT TO DERAIL THE ECONOMY?

Here's an excellent discussion on the economy and China. We present many views here, and Pragcap's are some of the most thoughtful and balanced. And if you haven't yet, check out Op-Toon's Review (fun images and satirical commentary). - Ilene 

IS CONGRESS ABOUT TO DERAIL THE ECONOMY?

Courtesy of The Pragmatic Capitalist 

The United States government has made a curious series of interventionist moves over the course of the last 18 months. Some have been beneficial, but not surprisingly, few of these policies are actually helping the economy recover from the Great Recession.

As I’ve previously mentioned, Keynesianism can work.&nb...



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Zero Hedge

Banks Stifle First Amendment, Attempt To Create A Tiered Market Of "Clients" And "Everyone Else" As Flyonthewall.com Is Blocked From Instant Stock Research Reporting

Courtesy of Tyler Durden

Flyonthewall.com, which is a news aggregator service (much like most of the blogosphere these days, but without the snarky commentary), and is hosted on Zero Hedge, has just seen a major driver of its business model cut off, after several banks just won an injunction that blocks Fly from notifying its clients when a bank may have issued a research event such as an Upgrade or, on those extremely rare occasions nowadays, Downgrade. The banks who feel violated by everyone getting access to information about their sellside detritus contemporaneously, not just wealthy accounts and wire services, are Barclays, Bank of America Corp.’s Merrill Lynch, and Morgan Stanley. As Bloomberg reports, "U.S. District Judge Denise Cote in New York today granted a request for an injunction sought by the three bank...



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Trading Goddess

Natural Gas Stocks: Hot Air or Hot Air Rising?


Yes, we've had some bad weather in the East. But with the ending of Winter and the onslaught of Spring, natural gas futures fell to their lowest level in about four years. If you look at a chart of natural gas, you will notice that since July of 2008, gas has been in a constant downtrend. However, the natural gas stocks, utilities, and publicly traded limited partnerships have been bouncing all over the place during the last couple years.

Income investors like natural gas stocks for several reasons. First, they pay a decent dividend with over 15 paying more than 4%. Second, they provide diversification from electric utilities. The average price to earnings ratio for all these stocks is less than 15. And in terms of gas stocks, in addition to natural gas companies, investors can...

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The Options Report

By Andrew Wilkinson


Citi-Bull Sheds Just Under a Quarter Million Put Options

Today’s tickers: C, ERTS, ATVI, DNDN, HIG, DD, RCL, SFD & AMR

C - Citigroup, Inc. – One investor established a mammoth bullish stance on Citigroup in the first 20 minutes of the current trading session. Citigroup’s shares at the time of the transaction were trading at approximately $4.05, but have since slipped lower and are down 0.50% to $4.03 as of 2:45 pm (ET). It looks like the Citi-bull sold 240,000 put options outright at the April $4.0 strike to take in a premium of $0.16 per contract. Premium received on the sale, which represents maximum potential profits, amounts to $3.840 million to the investor if Citigroup’s shares trade above $4.00 through expiration day. The short stance in put options implies the investor is willing to have 24 million shares of the underlying stock put to him at an effective price...



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Insider Zone


Insiders: March to Exit

By Ilene

Let's take a look at Insider Buying and Selling over the last week or so. These are screen shots from Finviz - the significant buys against a green background first and significant sells against the pink background second.  All the buys fit into my screen shot but the sells did not.  Click here to see all the sells.  

Note that the largest buy in the group, for KITD was at a price of 9.73 (KITD is currently at 11.54). The buy was part of an Equity Offering rather than an open market purchase. Tuzman Kaleil Isaza's (KITD's Chairman and Chief Exec. Officer) history of buys is http://www.insidercow.com/ more from Insider

OpTrader


Swing trading portfolio - week of March 15th 2010

This post is for live trades and daily comments. 

To learn more about the swing trading portfolio (strategy, membership etc.), please click here

- Optrader

...

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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Ilene is editor and affiliate program coordinator for PSW. She manages the Favorites backup site (blogroll, archives, more). Contact Ilene to learn about our affiliate and content sharing programs.

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