Today Congress appears to be making progress on the bailout/rescue plan for the financial markets. Hopefully we have a deal by tomorrow night 6pm EST when the Asian Markets open for trading.
If a bailout plan isn't agreed upon by that time....we could be looking at a serious down day on Monday. I think we have a few days grace period to get this done, as long as we don't hear the deal has stalled or looks unlikely.
When we get a deal, I think we will have a nice rally....but then people will focus back on the economy again. It's a vicious circle of pessimism!
Stay Tuned!
Saturday, September 27, 2008
Thursday, September 25, 2008
RIMM Earnings Miss - 9/25/08
Research in Motion ( RIMM ) came in with earnings of .86EPS vs .87EPS - so they missed by a penny.....stock is getting hammered down to $84....I think this is way overdone but given the environment we are in right now....you better not miss earnings! Also, they are giving really bad guidance!
$80.20 is next support which was the low back in March.
$80.20 is next support which was the low back in March.
( V ) Visa Technical Analysis 9/25/08 - Visa V Stock Chart
Visa Technical Analysis 9/25/08
Right now you want to watch the $64 level for Visa. Besides the Thursday meltdown to $58.38.....Visa held on a closing basis, $64. Once ( V ) breaks out of this lower lows, lower highs trend, it will stop going down.
Your first sign of this trend reversal will be a close back over $71.16....then you will want to be on board the Visa train.
Right now you want to watch the $64 level for Visa. Besides the Thursday meltdown to $58.38.....Visa held on a closing basis, $64. Once ( V ) breaks out of this lower lows, lower highs trend, it will stop going down.
Your first sign of this trend reversal will be a close back over $71.16....then you will want to be on board the Visa train.
Tuesday, September 23, 2008
Goldman Sachs ( GS ) catches Buffett & Berkshire
You know, I was watching the stock market close today like I do every day, and I noticed two things. At about 3:53pmEST the market was tanking and Goldman Sachs ( GS ) was starting to take off. GS went from $119 to $125 on heavy volume but I could not find any news.
Well look what has the stock market futures taking off tonight!
The Goldman Sachs Group, Inc. (NYSE: GS) announced today that it has reached an agreement to sell $5 billion of perpetual preferred stock to Berkshire Hathaway, Inc. in a private offering. The preferred stock has a dividend of 10 percent and is callable at any time at a 10 percent premium. In conjunction with this offering, Berkshire Hathaway will also receive warrants to purchase $5 billion of common stock with a strike price of $115 per share, which are exercisable at any time for a five year term.
In addition, Goldman Sachs is raising at least $2.5 billion in common equity in a public offering.
“We are pleased that given our longstanding relationship, Warren Buffett, arguably the world’s most admired and successful investor, has decided to make such a significant investment in Goldman Sachs. We view it as a strong validation of our client franchise and future prospects,” said Lloyd C. Blankfein, Chairman and CEO of The Goldman Sachs Group, Inc. “This investment will further bolster our strong capitalization and liquidity position.”
“Goldman Sachs is an exceptional institution,” said Warren Buffett, Chairman and CEO of Berkshire Hathaway, Inc. “It has an unrivaled global franchise, a proven and deep management team and the intellectual and financial capital to continue its track record of outperformance.”
Well look what has the stock market futures taking off tonight!
The Goldman Sachs Group, Inc. (NYSE: GS) announced today that it has reached an agreement to sell $5 billion of perpetual preferred stock to Berkshire Hathaway, Inc. in a private offering. The preferred stock has a dividend of 10 percent and is callable at any time at a 10 percent premium. In conjunction with this offering, Berkshire Hathaway will also receive warrants to purchase $5 billion of common stock with a strike price of $115 per share, which are exercisable at any time for a five year term.
In addition, Goldman Sachs is raising at least $2.5 billion in common equity in a public offering.
“We are pleased that given our longstanding relationship, Warren Buffett, arguably the world’s most admired and successful investor, has decided to make such a significant investment in Goldman Sachs. We view it as a strong validation of our client franchise and future prospects,” said Lloyd C. Blankfein, Chairman and CEO of The Goldman Sachs Group, Inc. “This investment will further bolster our strong capitalization and liquidity position.”
“Goldman Sachs is an exceptional institution,” said Warren Buffett, Chairman and CEO of Berkshire Hathaway, Inc. “It has an unrivaled global franchise, a proven and deep management team and the intellectual and financial capital to continue its track record of outperformance.”
( GM ) General Motors CEO turns to Google's Youtube.com
Today, General Motors is reaching out to investors in attempt to clarify where the company is headed going into the future. Rick Wagoner posted this Youtube video today.
Stocks to Watch 9/23 - ABK, DSL, RIMM, BIDU, V
This morning the stock market futures are up slightly as the Government scrambles to put together a bailout plan for our financials markets. Yesterday Oil shot up $25 a barrel at one point due to buyers having to buy before contract options expiration. Oil is hovering around $108 right now in pre market.
Stock to Watch today: I am watching Research in Motion ( RIMM ) as I think there could be a nice trade here. RIMM has been all over the place over the past few weeks...with resistance being at that $110-$112 level. I can count several times where you could have bought under $100 and sold at $110 over the past few weeks. Even last week, you could have bought under $90 and sold at $107. So with RIMM today, i'd like to buy it under $95.
Ambac ( ABK ) is moving higher in pre market....this stock has gotten killed over the past few days due to fears that Moodys will cut their rating. The business is still sound, but if their rating gets cut, i'd assume they'd lose business. Day Trade ABK when it clears the high of the day. I could see it running back to $4.50-$5 in a few weeks. I would not hold it over night due to the Moodys problem.
DSL - They hired a new CEO....finally!
I'm looking to trade BIDU, Visa ( V ) and watching for the Gphone from Google ( GOOG ) to come out. The Google phone can do many things the Iphone can't such as..... Copy and Paste text into email and around the web like your normal computer can do. The iphone can't do this! The Gphone supports the open network and most of the Apps are free....where the Iphone you must pay for them. I think people will like the Gphone because of the freeness of the network....rather then Steve Jobs choosing what can go on your phone and what can't.
I will have another update later...don't forget about RIMM Earning 9/25/08
http://www.blackberrystocks.com/
Stock to Watch today: I am watching Research in Motion ( RIMM ) as I think there could be a nice trade here. RIMM has been all over the place over the past few weeks...with resistance being at that $110-$112 level. I can count several times where you could have bought under $100 and sold at $110 over the past few weeks. Even last week, you could have bought under $90 and sold at $107. So with RIMM today, i'd like to buy it under $95.
Ambac ( ABK ) is moving higher in pre market....this stock has gotten killed over the past few days due to fears that Moodys will cut their rating. The business is still sound, but if their rating gets cut, i'd assume they'd lose business. Day Trade ABK when it clears the high of the day. I could see it running back to $4.50-$5 in a few weeks. I would not hold it over night due to the Moodys problem.
DSL - They hired a new CEO....finally!
I'm looking to trade BIDU, Visa ( V ) and watching for the Gphone from Google ( GOOG ) to come out. The Google phone can do many things the Iphone can't such as..... Copy and Paste text into email and around the web like your normal computer can do. The iphone can't do this! The Gphone supports the open network and most of the Apps are free....where the Iphone you must pay for them. I think people will like the Gphone because of the freeness of the network....rather then Steve Jobs choosing what can go on your phone and what can't.
I will have another update later...don't forget about RIMM Earning 9/25/08
http://www.blackberrystocks.com/
Monday, September 22, 2008
ABK Ambac Stock 9/22/08 - Moody's threatens to Downgrade
Shares of Ambac Financial Group ( ABK ) plunged 42 percent in heavy volume Friday, a day after Moody's said it might downgrade the bond insurer's ratings. This morning in pre market trading, ABK is set to $3.30...or another 10%
After markets closed on Friday, Ambac put out a statement saying it would suspend its $50 million stock buyback plan and postpone an $850 million contribution to Connie Lee, its new financial-guarantee subsidiary. Ambac also said any potential downgrade would pressure its business in the near term.
Keep this stock on your radars.......
After markets closed on Friday, Ambac put out a statement saying it would suspend its $50 million stock buyback plan and postpone an $850 million contribution to Connie Lee, its new financial-guarantee subsidiary. Ambac also said any potential downgrade would pressure its business in the near term.
Keep this stock on your radars.......
Thursday, September 18, 2008
Dow Jones Analysis 9/19/08 - Dow Jones Technical Analysis
Dow Jones - Technical Analysis - Today the dow will open at around 11280, or right between the 10 day and 50 day moving average. 11,400 is our first major level of resistance...if we can close above this level, most likely we will test 11867 which was the August high. If we break through this level, the bottom will be in at 10475. Jim Cramer, take note. Stop trying to call bottoms until they are made. Yesterdays close of 11019 acts as strong support given the gap up today. If this fails, back down we go!
Pre Market Stock Trading 9/19/08 - Short Selling, RTC Plan
Yesterdays explosive rally in the stock market was started by CNBC as they hinted at the possibility that the government was working on an RTC plan.
This morning we have news that short selling will be banned in most financial companies until Oct 2nd.
The SEC, which had convened a late-night commission meeting Thursday to consider several items, said in a statement early Friday morning it is halting short selling on 799 financial stocks. The ban, which is effective immediately, is set to last for 10 days, but could be extended for up to 30 days.
The Dow briefly dipped below 10,500 around 1pm yesterday ( MS stock $12 per share ) and it is set to open at 11,250 ( MS stock set to open a $30 per share )
I have been slacking on my Technical Analysis Stock Charts over the past few weeks because this market is so volatile....I will update them all this weekend!
This morning we have news that short selling will be banned in most financial companies until Oct 2nd.
The SEC, which had convened a late-night commission meeting Thursday to consider several items, said in a statement early Friday morning it is halting short selling on 799 financial stocks. The ban, which is effective immediately, is set to last for 10 days, but could be extended for up to 30 days.
The Dow briefly dipped below 10,500 around 1pm yesterday ( MS stock $12 per share ) and it is set to open at 11,250 ( MS stock set to open a $30 per share )
I have been slacking on my Technical Analysis Stock Charts over the past few weeks because this market is so volatile....I will update them all this weekend!
BIDU oh sweet BIDU - Shorts Covered!
Someone got caught very short in BIDU stock today.....BIDU was due to close around $278 and then right at the close a large position was bought from $280 to $305.
BIDU is now bidding $289 afterhours......a $49 move in a little over an hour!
Shorts, stop betting against great companies!
BIDU is now bidding $289 afterhours......a $49 move in a little over an hour!
Shorts, stop betting against great companies!
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