BP Set to Try Risky Move to Contain Flow
LINK
BP PLC, facing rising public anger in the U.S., began Monday its third attempt to contain oil from its leaking well in the Gulf of Mexico, but the risky operation could make the spill worse in the short term.
The latest procedure involves slicing off the leaking pipe at the top of the well's broken blow-out preventer, placing a cap over the leak and channeling the captured oil and gas to a vessel on the surface. BP officials said the procedure could take from four days to a week, and it already has two different caps on the ocean floor, ready to be deployed.
source:wsj
Monday, May 31, 2010
Storing a Bet on Higher Oil Prices
LINK
A global scramble for oil-storage facilities is boosting profitability and the share prices of both storage operators and the companies that build new capacity.
Storage capacity, typically located near ports or key distribution areas, allows traders to sit on cargoes until prices improve. That has become more enticing over the past two years as oil has come off record levels of nearly $150 a barrel.
"Access to storage is the entry card to arbitrage," said Ben Holt, vice president of downstream consulting at Wood Mackenzie, a consultancy in London. "There is an increasing trend for trading companies to understand that they need to have access to oil storage in order to do the things that they do," like export crude and other oil products to regions where prices are higher.
source:wsj
A global scramble for oil-storage facilities is boosting profitability and the share prices of both storage operators and the companies that build new capacity.
Storage capacity, typically located near ports or key distribution areas, allows traders to sit on cargoes until prices improve. That has become more enticing over the past two years as oil has come off record levels of nearly $150 a barrel.
"Access to storage is the entry card to arbitrage," said Ben Holt, vice president of downstream consulting at Wood Mackenzie, a consultancy in London. "There is an increasing trend for trading companies to understand that they need to have access to oil storage in order to do the things that they do," like export crude and other oil products to regions where prices are higher.
source:wsj
Sunday, May 30, 2010
Now Everyone Thinks The Market's Going To Crash
A month ago, with the market charging ever higher, climbing the "wall of worry," most bearish voices had been silenced. Now they're back with a vengeance.
LINK ARTICLE TO CONTINUE
LINK ARTICLE TO CONTINUE
JPMorgan:Here's Three Signs That We've Hit The Market Bottom
JPMorgan: Here's Three Signs That We've Hit The Market Bottom
JP Morgan thinks we’ve seen the market bottom. They cite three different factors that lead them to believe this:
1. Analysis Paralysis: Proxy for Buy-Side Capitulation. For the first time since the correction started (April 23rd), we saw demonstrable “analysis paralysis” from our clients. That is, despite rationally saying valuations are attractive, they were unable to find any stocks they were willing to buy at any price.
2. AAII Diffusion Index (% Bulls less % Bears) fell into negative territory. This fell to -21% this week, reflecting a broad-based decrease in investor confidence. As shown in Figure 1 below, a push into negative territory is historically associated with past correction lows.
3. In past intraday Crashes (a la 5/6’s “Flash Crash”) markets stabilize average 30 days later. It has been 21 days since the intraday decline of 9%. Since 1900, in the 6 prior instances of 9%-plus intraday crashes, markets tend to bottom by day 32.
Source: WSJ
JP Morgan thinks we’ve seen the market bottom. They cite three different factors that lead them to believe this:
1. Analysis Paralysis: Proxy for Buy-Side Capitulation. For the first time since the correction started (April 23rd), we saw demonstrable “analysis paralysis” from our clients. That is, despite rationally saying valuations are attractive, they were unable to find any stocks they were willing to buy at any price.
2. AAII Diffusion Index (% Bulls less % Bears) fell into negative territory. This fell to -21% this week, reflecting a broad-based decrease in investor confidence. As shown in Figure 1 below, a push into negative territory is historically associated with past correction lows.
3. In past intraday Crashes (a la 5/6’s “Flash Crash”) markets stabilize average 30 days later. It has been 21 days since the intraday decline of 9%. Since 1900, in the 6 prior instances of 9%-plus intraday crashes, markets tend to bottom by day 32.
Source: WSJ
Saturday, May 29, 2010
More Money or More Friends? Pick One
LINK ARTICLE
Happiness is a funny thing. It’s not a chemical in our blood. It’s not a spot in our brain that “lights up” under the gaze of an MRI. We have no account of it that goes up and down as we get a new job or a loved one takes ill or our favorite team wins the World Series.
At the same time, happiness is — or at least should be — something in which we’re quite interested. What makes it go up? What makes it go down? We’ll do quite a bit to obtain money, and the government will do quite a bit to try to ensure economic growth. But that money is ultimately supposed to bring us satisfaction, joy, contentment. And, yet, how do we know whether or not it has?
Happiness is a funny thing. It’s not a chemical in our blood. It’s not a spot in our brain that “lights up” under the gaze of an MRI. We have no account of it that goes up and down as we get a new job or a loved one takes ill or our favorite team wins the World Series.
At the same time, happiness is — or at least should be — something in which we’re quite interested. What makes it go up? What makes it go down? We’ll do quite a bit to obtain money, and the government will do quite a bit to try to ensure economic growth. But that money is ultimately supposed to bring us satisfaction, joy, contentment. And, yet, how do we know whether or not it has?
Friday, May 28, 2010
Market Summary 5/28/2010
Stock Market Closing Prices – 5/28/10
Dow ( DJIA ) Close - 10136.63 -122.36
Nasdaq Stock Close – 2257.04 -20.64
S&P 500 Close – 1089.41 -13.65
Commodities Closing Prices – 5/28/10
Gold Close - 1212.20 +1.50
Oil Close – 73.97 -1.35
Natural Gas – 4.35
Stocks falls 122 points Friday at the end of the Dow's worst month in 70 years, after a downgrade of Spain's debt reminded investors that Europe's economic woes continue.
U.S. light crude oil for July delivery fell 58 cents to settle at $73.97 a barrel on the New York Mercantile Exchange.
BP has spent $1 billion on the oil spill. US markets will close Monday for Memorial Day.
Market breadth was negative. On the NY Stock Exchange, losers beat winners two to one on volume of 1.45 billion shares. On the Nasdaq, decliners topped advancers by two to one on volume of 2.18 billion shares.
Dow ( DJIA ) Close - 10136.63 -122.36
Nasdaq Stock Close – 2257.04 -20.64
S&P 500 Close – 1089.41 -13.65
Commodities Closing Prices – 5/28/10
Gold Close - 1212.20 +1.50
Oil Close – 73.97 -1.35
Natural Gas – 4.35
Stocks falls 122 points Friday at the end of the Dow's worst month in 70 years, after a downgrade of Spain's debt reminded investors that Europe's economic woes continue.
U.S. light crude oil for July delivery fell 58 cents to settle at $73.97 a barrel on the New York Mercantile Exchange.
BP has spent $1 billion on the oil spill. US markets will close Monday for Memorial Day.
Market breadth was negative. On the NY Stock Exchange, losers beat winners two to one on volume of 1.45 billion shares. On the Nasdaq, decliners topped advancers by two to one on volume of 2.18 billion shares.
Thursday, May 27, 2010
Market Summary 5/27/2010
Stock Market Closing Prices – 5/27/10
Dow ( DJIA ) Close - 10258.99 +284.54
Nasdaq Stock Close – 2277.68 +81.80
S&P 500 Close – 1103.66 +35.11
Commodities Closing Prices – 5/27/10
Gold Close - 1209.70 -2.20
Oil Close – 74.37 -0.18
Natural Gas – 4.30
Stocks soared Thursday, with the major indexes gaining about 3%, The Dow added 285 points !
The Stock Market soared on news that China still like the Euro dollar!
Crude oil had its biggest gain since January, and the dollar fell about 1% against the euro. Oil for July delivery rose $3.04, to $74.55 a barrel.
Futures trading suggests stocks face a flat open on Friday.
But volume will be light because many investors will leave early for the Memorial Day weekend. Financial markets will be closed Monday for the holiday.
Stock Market May 28, 2010
Chicago PMI Report - 9:45am EST
Michigan Consumer Sentiment Report - 9:55am EST
Dow ( DJIA ) Close - 10258.99 +284.54
Nasdaq Stock Close – 2277.68 +81.80
S&P 500 Close – 1103.66 +35.11
Commodities Closing Prices – 5/27/10
Gold Close - 1209.70 -2.20
Oil Close – 74.37 -0.18
Natural Gas – 4.30
Stocks soared Thursday, with the major indexes gaining about 3%, The Dow added 285 points !
The Stock Market soared on news that China still like the Euro dollar!
Crude oil had its biggest gain since January, and the dollar fell about 1% against the euro. Oil for July delivery rose $3.04, to $74.55 a barrel.
Futures trading suggests stocks face a flat open on Friday.
But volume will be light because many investors will leave early for the Memorial Day weekend. Financial markets will be closed Monday for the holiday.
Stock Market May 28, 2010
Chicago PMI Report - 9:45am EST
Michigan Consumer Sentiment Report - 9:55am EST
Investor Ackman buys 150 million shares of Citigroup
LINK ARTICLE
Activist investor William Ackman said on Wednesday that his firm recently bought 150 million shares of Citigroup Inc , but didn't provide his reason or an investment thesis for the purchase.
Activist investor William Ackman said on Wednesday that his firm recently bought 150 million shares of Citigroup Inc , but didn't provide his reason or an investment thesis for the purchase.
Wednesday, May 26, 2010
Market Summary 5/26/2010
Stock Market Closing Prices – 5/26/10
Dow ( DJIA ) Close - 9974.45 -69.30
Nasdaq Stock Close – 2195.98 -15.07
S&P 500 Close – 1067.95 -6.08
Commodities Closing Prices – 5/26/10
Gold Close - 1213.30 +0.00
Oil Close – 71.52 +0.01
Natural Gas – 4.06
Dow drops below 10,000 as worries about global growth and a slide in the euro overshadowed upbeat economic news.
The blue chips close at their lowest level since February as the euro falls.
Microsoft and McDonald's fell back. McDonald's was down 2.7% to $66.01. Microsoft was off 4.1% to $25.01, the worst performer among the 30 Dow stocks!
Durable-goods orders increase more than expected, and new-home sales hit highest level in 2 years.
Crude oil was up $2.62 to $71.37 a barrel after the Energy Department said total fuel demand gained 0.6% to 19.7 million barrels a day in the week ended May 21.
Market breadth was positive. On the NY Stock Exchange, winners beat losers three to two on volume of 1.94 billion shares. On the Nasdaq, advancers topped decliners seven to six on volume of 3.08 billion shares.
Stock Market May 27, 2010
GDP Est - 8:30am EST
Initial Claims - 8:30am EST
Dow ( DJIA ) Close - 9974.45 -69.30
Nasdaq Stock Close – 2195.98 -15.07
S&P 500 Close – 1067.95 -6.08
Commodities Closing Prices – 5/26/10
Gold Close - 1213.30 +0.00
Oil Close – 71.52 +0.01
Natural Gas – 4.06
Dow drops below 10,000 as worries about global growth and a slide in the euro overshadowed upbeat economic news.
The blue chips close at their lowest level since February as the euro falls.
Microsoft and McDonald's fell back. McDonald's was down 2.7% to $66.01. Microsoft was off 4.1% to $25.01, the worst performer among the 30 Dow stocks!
Durable-goods orders increase more than expected, and new-home sales hit highest level in 2 years.
Crude oil was up $2.62 to $71.37 a barrel after the Energy Department said total fuel demand gained 0.6% to 19.7 million barrels a day in the week ended May 21.
Market breadth was positive. On the NY Stock Exchange, winners beat losers three to two on volume of 1.94 billion shares. On the Nasdaq, advancers topped decliners seven to six on volume of 3.08 billion shares.
Stock Market May 27, 2010
GDP Est - 8:30am EST
Initial Claims - 8:30am EST
Tuesday, May 25, 2010
Market Summary 5/25/2010
Stock Market Closing Prices – 5/25/10
Dow ( DJIA ) Close - 10043.75 -22.82
Nasdaq Stock Close – 2210.95 -2.60
S&P 500 Close – 1074.03 +0.38
Commodities Closing Prices – 5/25/10
Gold Close - 1197.80 +0.00
Oil Close – 69.50 +0.75
Natural Gas – 4.08
Stocks erased most losses by the close Tuesday, with the Dow ending down just 22 points after having fallen close to 300 points earlier in the session, as worries about the global economy were tempered.
At the same time, financial stocks recovered after Rep. Barney Frank, D-Mass., said a provision to force banks to spin off their derivatives businesses "goes too far."
Home prices drop in April but are up over a year ago.
Crude oil falls.U.S. light crude oil for July delivery fell $1.46 to settle at $68.75 a barrel.
If futures trading late today is correct, stocks should open higher on Wednesday.
Stock Market May 26, 2010
Durable Goods - 8:30am EST
New Homes Sales - 10am EST
Crude Oil Inventories - 10:30am EST
Dow ( DJIA ) Close - 10043.75 -22.82
Nasdaq Stock Close – 2210.95 -2.60
S&P 500 Close – 1074.03 +0.38
Commodities Closing Prices – 5/25/10
Gold Close - 1197.80 +0.00
Oil Close – 69.50 +0.75
Natural Gas – 4.08
Stocks erased most losses by the close Tuesday, with the Dow ending down just 22 points after having fallen close to 300 points earlier in the session, as worries about the global economy were tempered.
At the same time, financial stocks recovered after Rep. Barney Frank, D-Mass., said a provision to force banks to spin off their derivatives businesses "goes too far."
Home prices drop in April but are up over a year ago.
Crude oil falls.U.S. light crude oil for July delivery fell $1.46 to settle at $68.75 a barrel.
If futures trading late today is correct, stocks should open higher on Wednesday.
Stock Market May 26, 2010
Durable Goods - 8:30am EST
New Homes Sales - 10am EST
Crude Oil Inventories - 10:30am EST
Monday, May 24, 2010
Market Summary 5/24/2010
Stock Market Closing Prices – 5/24/10
Dow ( DJIA ) Close - 10066.57 -126.82
Nasdaq Stock Close – 2213.50 -15.49
S&P 500 Close – 1073.65 -14.04
Commodities Closing Prices – 5/24/10
Gold Close - 1193.00 +0.00
Oil Close – 69.24 -0.97
Natural Gas – 4.03
Stocks tumbled Monday, with the Dow ending at a three-month low as worries about the global economic outlook overshadowed a bigger-than-expected rise in existing home sales.The Dow falls 127 as financial concerns abroad persist.
Energy and bank shares were under the most pressure during Monday's session, as the NYSE Arca Oil Index declined 1.9%.
Financial stocks slipped, including Dow components BAC, JPM, PNC, WFC, GS, and MS.
Market breadth was negative.
Stock Market May 25, 2010
Case - Shiller Home Index - 9:am EST
Consumer Confidence - 10am EST
Dow ( DJIA ) Close - 10066.57 -126.82
Nasdaq Stock Close – 2213.50 -15.49
S&P 500 Close – 1073.65 -14.04
Commodities Closing Prices – 5/24/10
Gold Close - 1193.00 +0.00
Oil Close – 69.24 -0.97
Natural Gas – 4.03
Stocks tumbled Monday, with the Dow ending at a three-month low as worries about the global economic outlook overshadowed a bigger-than-expected rise in existing home sales.The Dow falls 127 as financial concerns abroad persist.
Energy and bank shares were under the most pressure during Monday's session, as the NYSE Arca Oil Index declined 1.9%.
Financial stocks slipped, including Dow components BAC, JPM, PNC, WFC, GS, and MS.
Market breadth was negative.
Stock Market May 25, 2010
Case - Shiller Home Index - 9:am EST
Consumer Confidence - 10am EST
Sunday, May 23, 2010
Look into the Future with Stock Market Indexes
LINK ARTICLE
Futures Contracts on Stock Indexes May Hint at Market Direction.
You can get a clue about where after-hours traders are thinking the market will open by looking at the indexes in relationship to “fair value.”
Fair value is the relationship of a market index to its futures contract.
If the futures are higher than the fair value, then traders are betting the market will open up. However, if the futures are lower than the fair value, traders are looking for the index to open lower.
Futures Contracts on Stock Indexes May Hint at Market Direction.
You can get a clue about where after-hours traders are thinking the market will open by looking at the indexes in relationship to “fair value.”
Fair value is the relationship of a market index to its futures contract.
If the futures are higher than the fair value, then traders are betting the market will open up. However, if the futures are lower than the fair value, traders are looking for the index to open lower.
Key Earning Reports Next Week
Monday: Phillips-Van Heusen (PVH)
Tuesday: Autozone (AZO); Cracker Barrel (CRBL), Sanderson Farms (SAFM) and medical-equipment maker Medtronic (MDT). Medtronic's estimates of the costs of health care reform will command attention.
Wednesday: American Eagle Outfitters (AEO); Jo-Ann Stores (JAS), networking maker NetApp (NTAP) and homebuilder Toll Bros. (TOL).
Thursday: Big Lots (BIG), Borders (BGP) and H.J. Heinz (HNJ).
Friday: Mentor Graphics (MENT).
Cosco (COST) is probably the best-known company reporting next week. Before Wednesday's open, Costco is expected to report 66 cents a share in earnings on sales of $17.6 billion, up from 52 cents a share in earnings on revenue of $15.8 billion.
Tuesday: Autozone (AZO); Cracker Barrel (CRBL), Sanderson Farms (SAFM) and medical-equipment maker Medtronic (MDT). Medtronic's estimates of the costs of health care reform will command attention.
Wednesday: American Eagle Outfitters (AEO); Jo-Ann Stores (JAS), networking maker NetApp (NTAP) and homebuilder Toll Bros. (TOL).
Thursday: Big Lots (BIG), Borders (BGP) and H.J. Heinz (HNJ).
Friday: Mentor Graphics (MENT).
Cosco (COST) is probably the best-known company reporting next week. Before Wednesday's open, Costco is expected to report 66 cents a share in earnings on sales of $17.6 billion, up from 52 cents a share in earnings on revenue of $15.8 billion.
The Big Week Ahead
LINK ARTICLE
Three housing related reports will be released this week: existing home sales on Monday, Case-Shiller house prices on Tuesday, and new home sales on Wednesday.
On Monday, the April Chicago Fed National Activity Index will be released at 8:30 AM. This is a composite index of other data. At 10 AM the National Association for Realtors (NAR) will release the April existing home sales report. The consensus is for an increase to 5.6 million sales in April as a seasonally adjusted annual rate (SAAR). Also on Monday, the DOT will probably release the Vehicle Miles Driven for March. This has been showing declining Year-over-year miles driven.
On Tuesday, the March Case-Shiller house price index will be released at 9:00 AM. The consensus is for a slight decline in the house price index. At 10:00 AM, the Conference Board will release Consumer Confidence for May (consensus is for an increase to 59). Also on Tuesday, the FHFA house price index, and the Richmond Fed survey will be released.
On Wednesday, the April Durable Goods Orders will be released at 8:30 AM. The consensus is for a 1.5% increase. At 10 AM, the Census Bureau will release the April New Home sales report. The consensus is for an increase to 425K (SAAR) from 411K in March. Since new home sales are reported when a contract is signed, April was the last month that reported sales will be positively impacted by the tax credit.
On Thursday, the first revision of the Q1 GDP report will be released at 8:30 AM. The consensus is for an upward revision to 3.5% from the initially reported 3.2%. Also on Thursday, the closely watched initial weekly unemployment claims will be released. Consensus is for a decline to 450K from 471K last week.
And on Friday, the BEA will release the Personal Income and Outlayreport for April at 8:30 AM. Also on Friday the Chicago Purchasing Managers Index for May will be released. And of course the FDIC will probably have another busy Friday afternoon ...
There will be several Fed speeches this week, and a few other economic releases (trucking index, restaurant index).
Three housing related reports will be released this week: existing home sales on Monday, Case-Shiller house prices on Tuesday, and new home sales on Wednesday.
On Monday, the April Chicago Fed National Activity Index will be released at 8:30 AM. This is a composite index of other data. At 10 AM the National Association for Realtors (NAR) will release the April existing home sales report. The consensus is for an increase to 5.6 million sales in April as a seasonally adjusted annual rate (SAAR). Also on Monday, the DOT will probably release the Vehicle Miles Driven for March. This has been showing declining Year-over-year miles driven.
On Tuesday, the March Case-Shiller house price index will be released at 9:00 AM. The consensus is for a slight decline in the house price index. At 10:00 AM, the Conference Board will release Consumer Confidence for May (consensus is for an increase to 59). Also on Tuesday, the FHFA house price index, and the Richmond Fed survey will be released.
On Wednesday, the April Durable Goods Orders will be released at 8:30 AM. The consensus is for a 1.5% increase. At 10 AM, the Census Bureau will release the April New Home sales report. The consensus is for an increase to 425K (SAAR) from 411K in March. Since new home sales are reported when a contract is signed, April was the last month that reported sales will be positively impacted by the tax credit.
On Thursday, the first revision of the Q1 GDP report will be released at 8:30 AM. The consensus is for an upward revision to 3.5% from the initially reported 3.2%. Also on Thursday, the closely watched initial weekly unemployment claims will be released. Consensus is for a decline to 450K from 471K last week.
And on Friday, the BEA will release the Personal Income and Outlayreport for April at 8:30 AM. Also on Friday the Chicago Purchasing Managers Index for May will be released. And of course the FDIC will probably have another busy Friday afternoon ...
There will be several Fed speeches this week, and a few other economic releases (trucking index, restaurant index).
Sprint Nextel: Ready for Relaunch
LINK ARTICLE
Less than two years ago, investors had all but given up on Sprint Nextel(ticker: S). The wireless carrier was struggling to meet its debt payments, and bankruptcy seemed a possibility. Following its 2005 merger with Nextel, Sprint began to bleed customers because of an overburdened network and poor customer care. Its shares have fallen 17% in the past year, compared with a 23% gain for the S&P 500.
Yet in that same period, there's been improvement in an important area -- subscriber losses have slowed, and bulls think that Sprint could resume expanding its customer base by the end of the year.
Less than two years ago, investors had all but given up on Sprint Nextel(ticker: S). The wireless carrier was struggling to meet its debt payments, and bankruptcy seemed a possibility. Following its 2005 merger with Nextel, Sprint began to bleed customers because of an overburdened network and poor customer care. Its shares have fallen 17% in the past year, compared with a 23% gain for the S&P 500.
Yet in that same period, there's been improvement in an important area -- subscriber losses have slowed, and bulls think that Sprint could resume expanding its customer base by the end of the year.
When Growth Meets Value
LINK ARTICLE
AN INTERVIEW WITH ARTHUR MORETTI: This Neuberger Berman fund manager sees opportunity in the convergence between growth and value.
Moretti's Picks
Company Ticker Recent Price
Altera ALTR $22.90
Yahoo! YHOO 15.10
Intuit INTU 33.75
Source: Bloomberg
AN INTERVIEW WITH ARTHUR MORETTI: This Neuberger Berman fund manager sees opportunity in the convergence between growth and value.
Moretti's Picks
Company Ticker Recent Price
Altera ALTR $22.90
Yahoo! YHOO 15.10
Intuit INTU 33.75
Source: Bloomberg
A Billionaire Goes All-In on Gold
Gold is setting records again, boosting the holdings of central banks, Armageddon worrywarts, and ordinary people who own gold bars, coins and jewelry.
But few individuals stand to benefit as much as low-profile billionaire Thomas Kaplan. A New York-born commodities magnate who earned a doctorate in British colonial history at Oxford, Mr. Kaplan oversees an empire devoted largely to gold.
Many fund managers and high-rollers have allocated small percentages of their portfolios to gold as a hedge against inflation. But Mr. Kaplan is the bull of bullion. He has gone further than perhaps any other major investor, betting the majority ...
Source: wsj
But few individuals stand to benefit as much as low-profile billionaire Thomas Kaplan. A New York-born commodities magnate who earned a doctorate in British colonial history at Oxford, Mr. Kaplan oversees an empire devoted largely to gold.
Many fund managers and high-rollers have allocated small percentages of their portfolios to gold as a hedge against inflation. But Mr. Kaplan is the bull of bullion. He has gone further than perhaps any other major investor, betting the majority ...
Source: wsj
Saturday, May 22, 2010
Dividend investing gets more attractive
LINK ARTICLE
As the recession slowly fades, more companies are upping their dividend payments.
LINK ARTICLE
As the recession slowly fades, more companies are upping their dividend payments.
LINK ARTICLE
New bear market, or just a correction?
LINK ARTICLE
It's been a tough couple of weeks for stocks. From its April high, the S&P 500 lost more than 13.4% as it dropped into Friday's low. The index also sliced through its 200-day moving average -- which is seen as the demarcation line between bull and bear markets.
...
Remember that the 2003 to 2007 bull market featured multiple excursions below the 200-day moving average for the S&P 500 -- and each was a buying opportunity. Given the evidence, I think the same playbook applies. This is a bull market. And dips are supposed to be bought.
It's been a tough couple of weeks for stocks. From its April high, the S&P 500 lost more than 13.4% as it dropped into Friday's low. The index also sliced through its 200-day moving average -- which is seen as the demarcation line between bull and bear markets.
...
Remember that the 2003 to 2007 bull market featured multiple excursions below the 200-day moving average for the S&P 500 -- and each was a buying opportunity. Given the evidence, I think the same playbook applies. This is a bull market. And dips are supposed to be bought.
Friday, May 21, 2010
Market Focus 5/21/2010
Stock Market Closing Prices – 5/21/10
Dow ( DJIA ) Close - 10193.39 +125.38
Nasdaq Stock Close – 2229.04 +25.03
S&P 500 Close – 1087.69 +16.10
Commodities Closing Prices – 5/21/10
Gold Close - 1175.70 -12.10
Oil Close – 70.05 -0.75
Natural Gas – 4.04
Stocks ended higher Friday, The Dow rose 125 points or 1.3%, after having fallen as much as 150 points earlier in the session.
Short-sellers may have set off the late buying as they booked profits. The euro rises after the German parliament approves a nearly $1 trillion bailout package. Dell results don't impress.
Financial shares rose after the Senate passed long-awaited financial reform legislation, removing a significant overhang for U.S. banks.
Crude oil for July delivery fell 76 cents to settle at $70.04 a barrel
The big question is whether the volatility is over.
Dow ( DJIA ) Close - 10193.39 +125.38
Nasdaq Stock Close – 2229.04 +25.03
S&P 500 Close – 1087.69 +16.10
Commodities Closing Prices – 5/21/10
Gold Close - 1175.70 -12.10
Oil Close – 70.05 -0.75
Natural Gas – 4.04
Stocks ended higher Friday, The Dow rose 125 points or 1.3%, after having fallen as much as 150 points earlier in the session.
Short-sellers may have set off the late buying as they booked profits. The euro rises after the German parliament approves a nearly $1 trillion bailout package. Dell results don't impress.
Financial shares rose after the Senate passed long-awaited financial reform legislation, removing a significant overhang for U.S. banks.
Crude oil for July delivery fell 76 cents to settle at $70.04 a barrel
The big question is whether the volatility is over.
Thursday, May 20, 2010
Market Focus 5/20/2010
Stock Market Closing Prices – 5/20/10
Dow ( DJIA ) Close - 10068.01 -376.36
Nasdaq Stock Close - 2204.01 -94.36
S&P 500 Close – 1071.59 -43.46
Commodities Closing Prices – 5/20/10
Gold Close - 1182.40 -5.40
Oil Close – 68.01 +0.00
Natural Gas – 4.10
With today's sell-off, the U.S. market is now in a correction, with the Dow, the S&P500 and the Nasdaq all down more than 10% since their April highs.
Crude oil for June delivery hit a low of $64.24 a barrel but rebounded to a close of $68.91. That was still down $1.86 from Wednesday.
As the selling progressed, the major indexes fell below their 200-day moving levels, which are important support levels. Futures trading suggests a lower open for stocks on Friday.
The Senate on Thursday passed the most sweeping regulatory overhaul of the financial system since the New Deal.
Stock Market May 21, 2010
AnnTaylor Stores to release quarterly results. Before market open.
Dow ( DJIA ) Close - 10068.01 -376.36
Nasdaq Stock Close - 2204.01 -94.36
S&P 500 Close – 1071.59 -43.46
Commodities Closing Prices – 5/20/10
Gold Close - 1182.40 -5.40
Oil Close – 68.01 +0.00
Natural Gas – 4.10
With today's sell-off, the U.S. market is now in a correction, with the Dow, the S&P500 and the Nasdaq all down more than 10% since their April highs.
Crude oil for June delivery hit a low of $64.24 a barrel but rebounded to a close of $68.91. That was still down $1.86 from Wednesday.
As the selling progressed, the major indexes fell below their 200-day moving levels, which are important support levels. Futures trading suggests a lower open for stocks on Friday.
The Senate on Thursday passed the most sweeping regulatory overhaul of the financial system since the New Deal.
Stock Market May 21, 2010
AnnTaylor Stores to release quarterly results. Before market open.
Wednesday, May 19, 2010
Market Focus 5/19/2010
Stock Market Closing Prices – 5/19/10
Dow ( DJIA ) Close - 10444.37 -66.58
Nasdaq Stock Close – 2298.37 -18.89
S&P 500 Close – 1115.05 -5.75
Commodities Closing Prices – 5/19/10
Gold Close - 1192.60 +0.00
Oil Close – 70.43 +0.53
Natural Gas – 4.23
Stocks stumble after investors look past rising euro to unanswered questions about Europe debt. The Dow finished 67 points lower .
Crude oil moves higher,Crude oil rose 46 cents to $69.87 per barrel. Gold fell.
Tech stocks were weak, Chip stocks, however, were higher.
Target (TGT) reported Wednesday that its quarterly profit rose 28% to $671 million from a year ago.
The Federal Reserve offered a little cheer to investors. The Fed raised its forecast for 2010 growth to 3.5% from 3.2%.
Futures trading suggests U.S. stocks will open higher on Thursday.
Stock Market May 20, 2010
Oil Inventories - 10:30am EST
Dow ( DJIA ) Close - 10444.37 -66.58
Nasdaq Stock Close – 2298.37 -18.89
S&P 500 Close – 1115.05 -5.75
Commodities Closing Prices – 5/19/10
Gold Close - 1192.60 +0.00
Oil Close – 70.43 +0.53
Natural Gas – 4.23
Stocks stumble after investors look past rising euro to unanswered questions about Europe debt. The Dow finished 67 points lower .
Crude oil moves higher,Crude oil rose 46 cents to $69.87 per barrel. Gold fell.
Tech stocks were weak, Chip stocks, however, were higher.
Target (TGT) reported Wednesday that its quarterly profit rose 28% to $671 million from a year ago.
The Federal Reserve offered a little cheer to investors. The Fed raised its forecast for 2010 growth to 3.5% from 3.2%.
Futures trading suggests U.S. stocks will open higher on Thursday.
Stock Market May 20, 2010
Oil Inventories - 10:30am EST
Tuesday, May 18, 2010
Market Focus 5/18/2010
Stock Market Closing Prices – 5/18/10
Dow ( DJIA ) Close - 10510.95 -114.88
Nasdaq Stock Close – 2317.26 -36.97
S&P 500 Close – 1120.80 -16.14
Commodities Closing Prices – 5/18/10
Gold Close - 1210.00 +10.90
Oil Close – 68.65 -0.76
Natural Gas – 4.34
The Dow falls 115 points after euro falls to new four-year low.
Financials drop on regulatory worries that financial-reform legislation will kill profits. Wells Fargo & Co. fell $1.38, to $30.59, while Citigroup Inc. fell 13 cents, to $3.73.
Crude oil closed down 67 cents to $69.41 a barrel, its first close below $70 since Oct. 7, 2009.
Hewlett-Packard reported better-than-expected results after the close which cheer Street.
Stock Market May 19, 2010
U.S. consumer price index for April. 8:30 a.m.
Key procedural vote in Senate on the bank reform bill. 10 a.m.
Federal Reserve to release minutes from FOMC's April meeting. 2 p.m.
Target to report quarterly results. Before market open.
Dow ( DJIA ) Close - 10510.95 -114.88
Nasdaq Stock Close – 2317.26 -36.97
S&P 500 Close – 1120.80 -16.14
Commodities Closing Prices – 5/18/10
Gold Close - 1210.00 +10.90
Oil Close – 68.65 -0.76
Natural Gas – 4.34
The Dow falls 115 points after euro falls to new four-year low.
Financials drop on regulatory worries that financial-reform legislation will kill profits. Wells Fargo & Co. fell $1.38, to $30.59, while Citigroup Inc. fell 13 cents, to $3.73.
Crude oil closed down 67 cents to $69.41 a barrel, its first close below $70 since Oct. 7, 2009.
Hewlett-Packard reported better-than-expected results after the close which cheer Street.
Stock Market May 19, 2010
U.S. consumer price index for April. 8:30 a.m.
Key procedural vote in Senate on the bank reform bill. 10 a.m.
Federal Reserve to release minutes from FOMC's April meeting. 2 p.m.
Target to report quarterly results. Before market open.
Monday, May 17, 2010
Market Focus 5/17/2010
Stock Market Closing Prices – 5/17/10
Dow ( DJIA ) Close - 10625.83 +5.67
Nasdaq Stock Close – 2354.23 +7.38
S&P 500 Close – 1136.94 +1.26
Commodities Closing Prices – 5/17/10
Gold Close - 1210.00 +10.90
Oil Close – 70.68 +0.60
Natural Gas – 4.40
The Dow erased its 184-point loss and added 6 points after the euro rebounded from a four-year low and gained ground against the dollar.
Oil traded below $70 a barrel for the first time since February but finished above that psychological benchmark. Crude fell $1.45 to $70.16 per barrel.
GM posts its first profit since 2007, earning $865 million .
Lowe's(LOW) offered a cautious forecast, Lowe's closed down 3.1% to $25.26. But rival Home Depot shares were up 1.1% to $35.59.
Stock Market May 18, 2010
Building Permkits - 8:30am EST
PPI - 8:30am EST
Home Depot scheduled to report quarterly results. Before market open.
Wal-Mart to release quarterly results. Before market open.
Dow ( DJIA ) Close - 10625.83 +5.67
Nasdaq Stock Close – 2354.23 +7.38
S&P 500 Close – 1136.94 +1.26
Commodities Closing Prices – 5/17/10
Gold Close - 1210.00 +10.90
Oil Close – 70.68 +0.60
Natural Gas – 4.40
The Dow erased its 184-point loss and added 6 points after the euro rebounded from a four-year low and gained ground against the dollar.
Oil traded below $70 a barrel for the first time since February but finished above that psychological benchmark. Crude fell $1.45 to $70.16 per barrel.
GM posts its first profit since 2007, earning $865 million .
Lowe's(LOW) offered a cautious forecast, Lowe's closed down 3.1% to $25.26. But rival Home Depot shares were up 1.1% to $35.59.
Stock Market May 18, 2010
Building Permkits - 8:30am EST
PPI - 8:30am EST
Home Depot scheduled to report quarterly results. Before market open.
Wal-Mart to release quarterly results. Before market open.
Sunday, May 16, 2010
The West Is Facing A Debt Crisis And ...
LINK SITE And ARTICLE
The West Is Facing A Debt Crisis And It's Now Or Never For The American Empire
Historian Niall Ferguson spoke with the Big Think about where the world's future is heading, with the end of the American Empire very much in the cards.
Ferguson feels there is still a chance for Western dominance of the next age, if the U.S. can seriously trim its budget deficit because it has a political advantage over China due to its pluralistic democracy.
The West Is Facing A Debt Crisis And It's Now Or Never For The American Empire
Historian Niall Ferguson spoke with the Big Think about where the world's future is heading, with the end of the American Empire very much in the cards.
Ferguson feels there is still a chance for Western dominance of the next age, if the U.S. can seriously trim its budget deficit because it has a political advantage over China due to its pluralistic democracy.
Saturday, May 15, 2010
Next Week's Earnings Reports
Next Week’s Can’t Miss Earnings Reports (ABK, LOW, HD, WMT, HPQ, DE, AMAT, GME, SPLS, TGT, BRCD, DELL, GPS, MRVL, SHLD)
Monday: Lowe's is the big report.
Tuesday: Abercrombie & Fitch (ANF), Home Depot, Wal-Mart and Saks (SKS) before the bell; Hewlett-Packard after the close.
Wednesday: Deere (DE), Autodesk (ADSK), Limited Brands (LTD) and Target (TGT).
Thursday: Aeropostale (ARO), Intuit (INTU), Ross Stores (ROST), Marvell Technology (MRVL) and Williams-Sonoma (WSM).
Friday: Ann Taylor (ANN) and British Airways (BAIRY).
Monday: Lowe's is the big report.
Tuesday: Abercrombie & Fitch (ANF), Home Depot, Wal-Mart and Saks (SKS) before the bell; Hewlett-Packard after the close.
Wednesday: Deere (DE), Autodesk (ADSK), Limited Brands (LTD) and Target (TGT).
Thursday: Aeropostale (ARO), Intuit (INTU), Ross Stores (ROST), Marvell Technology (MRVL) and Williams-Sonoma (WSM).
Friday: Ann Taylor (ANN) and British Airways (BAIRY).
Friday, May 14, 2010
Market Focus 5/14/2010
Stock Market Closing Prices – 5/14/10
Dow ( DJIA ) Close - 10620.16 -162.79
Nasdaq Stock Close – 2346.85 -47.51
S&P 500 Close – 1135.68 -21.75
Commodities Closing Prices – 5/14/10
Gold Close - 1210.00 +10.90
Oil Close – 71.61 -2.35
Dow falls 163 points Friday on worries that Europe's economic woes could spread to the United States, while the euro fell to 18-month lows versus the dollar and gold hit fresh records.
Financial stocks slide on possible caps on debit card fees.
Crude oil fell 3.8% to $71.61 a barrel, its first close below $72 since Feb. 8. For the week, crude was off 4.7% and is down nearly 17% this month.
Moreover, the market has tended to fall on Fridays of late -- and rise on Monday.
But U.S. retail sales and industrial production rise. Retail sales make seventh straight gain. Department stores have mixed quarterly results.
Dow ( DJIA ) Close - 10620.16 -162.79
Nasdaq Stock Close – 2346.85 -47.51
S&P 500 Close – 1135.68 -21.75
Commodities Closing Prices – 5/14/10
Gold Close - 1210.00 +10.90
Oil Close – 71.61 -2.35
Dow falls 163 points Friday on worries that Europe's economic woes could spread to the United States, while the euro fell to 18-month lows versus the dollar and gold hit fresh records.
Financial stocks slide on possible caps on debit card fees.
Crude oil fell 3.8% to $71.61 a barrel, its first close below $72 since Feb. 8. For the week, crude was off 4.7% and is down nearly 17% this month.
Moreover, the market has tended to fall on Fridays of late -- and rise on Monday.
But U.S. retail sales and industrial production rise. Retail sales make seventh straight gain. Department stores have mixed quarterly results.
Thursday, May 13, 2010
Market Focus 5/13/2010
Stock Market Closing Prices – 5/13/2010
Dow ( DJIA ) Close - 10782.95 -113.96
Nasdaq Stock Close – 2394.36 -30.66
S&P 500 Close – 1157.43 -14.24
Commodities Closing Prices – 5/13/10
Gold Close - 1210.00 +10.90
Oil Close – 73.74 -0.66
Natural Gas – 4.31
Stocks slumped Thursday, with the Dow losing 114 points, as investors stepped back after propelling markets 5% higher in just three days.
The dollar strengthened versus the euro, dragging down dollar-traded oil, gold prices and stocks.
The Dow falls on weakness in Cisco, Apple, retail and financial shares. Gold, oil and the euro all fall.
New jobless claims drop for a fourth straight week.
Crude oil settled at $74.40, down 1.7% on the day. Oil is down 13.6% this month.
Futures trading suggests the market will open lower.
Stock Market May 14, 2010.
Retail Sales - 8:30am EST 0.03%
Dow ( DJIA ) Close - 10782.95 -113.96
Nasdaq Stock Close – 2394.36 -30.66
S&P 500 Close – 1157.43 -14.24
Commodities Closing Prices – 5/13/10
Gold Close - 1210.00 +10.90
Oil Close – 73.74 -0.66
Natural Gas – 4.31
Stocks slumped Thursday, with the Dow losing 114 points, as investors stepped back after propelling markets 5% higher in just three days.
The dollar strengthened versus the euro, dragging down dollar-traded oil, gold prices and stocks.
The Dow falls on weakness in Cisco, Apple, retail and financial shares. Gold, oil and the euro all fall.
New jobless claims drop for a fourth straight week.
Crude oil settled at $74.40, down 1.7% on the day. Oil is down 13.6% this month.
Futures trading suggests the market will open lower.
Stock Market May 14, 2010.
Retail Sales - 8:30am EST 0.03%
Wednesday, May 12, 2010
Stocks rose on early trade
Stocks rose Wednesday as investors' focus returned to the improving health of the domestic economy.
A new Commerce Department report showed exports jumped in March to their highest levels since 2008
The commodity climbs on worries about the Greek bailout package. Gold reaches record .Europe's GDP rises more than expected.
The US trade deficit hits a 15-month high.
Macy post a better-then-expected results.
A new Commerce Department report showed exports jumped in March to their highest levels since 2008
The commodity climbs on worries about the Greek bailout package. Gold reaches record .Europe's GDP rises more than expected.
The US trade deficit hits a 15-month high.
Macy post a better-then-expected results.
Tuesday, May 11, 2010
Market Focus 5/11/2010
Stock Market Closing Prices – 5/11/10
Dow ( DJIA ) Close - 10748.26 -36.88
Nasdaq Stock Close – 2375.31 +0.64
S&P 500 Close – 1155.79 -3.94
Commodities Closing Prices – 5/11/10
Gold Close - 1210.00 +10.90
Oil Close – 75.75 -0.62
Natural Gas – 4.14
The Dow lost 35 points, after having been down nearly 100 points and then up 89 points earlier in the session. The S&P 500 index lost 4 points, and the Nasdaq was little changed.
However, the worries of the last few weeks pushed investors into safe-haven areas such as the U.S. dollar and gold. Gold hits a new closing high settled at a record high of $1,220.30, up $19.50 an ounce.
Disney reported better-than-expected results.
That suggests skepticism about the market's strength going forward.
Stock Market May 12, 2010.
Crude Inventories - 10:30am EST
Macy's is set to announce quarterly results. Before market open.
Cisco Systems is scheduled to report quarterly results. After market close.
Whole Foods Markets is slated to release quarterly results. After market close.
Dow ( DJIA ) Close - 10748.26 -36.88
Nasdaq Stock Close – 2375.31 +0.64
S&P 500 Close – 1155.79 -3.94
Commodities Closing Prices – 5/11/10
Gold Close - 1210.00 +10.90
Oil Close – 75.75 -0.62
Natural Gas – 4.14
The Dow lost 35 points, after having been down nearly 100 points and then up 89 points earlier in the session. The S&P 500 index lost 4 points, and the Nasdaq was little changed.
However, the worries of the last few weeks pushed investors into safe-haven areas such as the U.S. dollar and gold. Gold hits a new closing high settled at a record high of $1,220.30, up $19.50 an ounce.
Disney reported better-than-expected results.
That suggests skepticism about the market's strength going forward.
Stock Market May 12, 2010.
Crude Inventories - 10:30am EST
Macy's is set to announce quarterly results. Before market open.
Cisco Systems is scheduled to report quarterly results. After market close.
Whole Foods Markets is slated to release quarterly results. After market close.
Stocks retreat early on concerns about EU bailout
Worries increase that the bailout won't solve debt crises. Greece will ask for a chunk of aid today.
Worries about Greece's fiscal situation blew up because of fears that the country would default on that debt.
Crude oil was up a nickel to $76.85 a barrel this morning.
Higher-than-expected inflation in China also sparked global jitters.
Worries about Greece's fiscal situation blew up because of fears that the country would default on that debt.
Crude oil was up a nickel to $76.85 a barrel this morning.
Higher-than-expected inflation in China also sparked global jitters.
Monday, May 10, 2010
Market Focus 5/10/2010
Stock Market Closing Prices – 5/10/10
Dow ( DJIA ) Close - 10785.14 +404.71
Nasdaq Stock Close – 2374.67 +109.03
S&P 500 Close – 1159.73 +48.85
Commodities Closing Prices – 5/10/10
Gold Close - 1210.00 +10.90
Oil Close – 75.11 -1.70
Natural Gas – 4.18
Stocks jumped in a global recovery after European leaders agree to a $955 billion bailout package to prevent the debt crisis from spreading.
The Dow shot up more than 400 points, or nearly 4%, while the S&P 500 and Nasdaq were each trading more than 4% higher.
Oil jumps higher. Crude oil up $1.69 to $76.80 a barrel as the dollar dropped against the euro.
McDonald reported better-than-expected results.
Obviously, the big question Tuesday is whether the market can continue its move higher after today's big rally.
Stock Market May 11, 2010
Wholesale Inventories - 10am EST
OPEC monthly oil supply demand report. 8 a.m.
Energy Information Administration monthly oil supply, demand report. Noon.
Walt Disney is set to announce quarterly results. After market close.
Dow ( DJIA ) Close - 10785.14 +404.71
Nasdaq Stock Close – 2374.67 +109.03
S&P 500 Close – 1159.73 +48.85
Commodities Closing Prices – 5/10/10
Gold Close - 1210.00 +10.90
Oil Close – 75.11 -1.70
Natural Gas – 4.18
Stocks jumped in a global recovery after European leaders agree to a $955 billion bailout package to prevent the debt crisis from spreading.
The Dow shot up more than 400 points, or nearly 4%, while the S&P 500 and Nasdaq were each trading more than 4% higher.
Oil jumps higher. Crude oil up $1.69 to $76.80 a barrel as the dollar dropped against the euro.
McDonald reported better-than-expected results.
Obviously, the big question Tuesday is whether the market can continue its move higher after today's big rally.
Stock Market May 11, 2010
Wholesale Inventories - 10am EST
OPEC monthly oil supply demand report. 8 a.m.
Energy Information Administration monthly oil supply, demand report. Noon.
Walt Disney is set to announce quarterly results. After market close.
Dow surges 400 points
Market jumped at the open after EU officials approved a $1 trillion bailout plan to stabilize the euro and rescue debt-ckoked Greece.
Oil jumped higher, Crude was up $2.33 to $77.44 a barrel.
McDonald (MCD) reported better-than-expected results.
Oil jumped higher, Crude was up $2.33 to $77.44 a barrel.
McDonald (MCD) reported better-than-expected results.
Sunday, May 9, 2010
Asia Higher on EU Bailout
Asian stock markets were higher Monday, lifted on news the European Union finance ministers had agreed to put together a plan to ensure stability in the euro zone.
Some appetite for risk was back in markets after heavy selloffs in recent sessions as European officials announced a 500 billion euro ($643 billion) support plan for euro-zone states facing financing trouble.
Of this money, 440 billion euros will come from a series of loans made by euro-zone governments, an additional 60 billion euros would come from surplus funds in the EU's 2007-2013 budget and the International Monetary Fund could contribute up to 250 billion euros as well.
Source: wsj
Some appetite for risk was back in markets after heavy selloffs in recent sessions as European officials announced a 500 billion euro ($643 billion) support plan for euro-zone states facing financing trouble.
Of this money, 440 billion euros will come from a series of loans made by euro-zone governments, an additional 60 billion euros would come from surplus funds in the EU's 2007-2013 budget and the International Monetary Fund could contribute up to 250 billion euros as well.
Source: wsj
Next Week Economic News
Monday: No Economic Report
Tuesday: Wholesale inventories, due out from the Commerce Department after the start of trading.
The House Financial Services Subcommittee on Capital Markets holds a hearing on Thursday's stock market roller coaster ride
Wednesday: The March trade balance, due out before the start of trading, is expected to have widened to $40 billion from $39.7 billion in February.
The April Treasury budget, due in the afternoon, is expected to have narrowed to $20 billion from $20.9 billion in March.
The weekly crude oil inventories report is also due in the morning.
Thursday: The weekly jobless claims report from the Department of Labor .
Import and export prices are also due in the morning.
Friday: April retail sales from the Commerce Department are due in the morning.
Tuesday: Wholesale inventories, due out from the Commerce Department after the start of trading.
The House Financial Services Subcommittee on Capital Markets holds a hearing on Thursday's stock market roller coaster ride
Wednesday: The March trade balance, due out before the start of trading, is expected to have widened to $40 billion from $39.7 billion in February.
The April Treasury budget, due in the afternoon, is expected to have narrowed to $20 billion from $20.9 billion in March.
The weekly crude oil inventories report is also due in the morning.
Thursday: The weekly jobless claims report from the Department of Labor .
Import and export prices are also due in the morning.
Friday: April retail sales from the Commerce Department are due in the morning.
Saturday, May 8, 2010
Bernanke Offers a Lesson on Happiness
LINK ARTICLE
Economics is, at its very roots, a study of how to improve human happiness and sense of satisfaction in life.
Mr. Bernanke, a former Princeton professor who was raised in South Caroina, offers a nice tour through the modern body of work, with a personal touch. Some interesting observations:
MONEY MATTERS
BUT MONEY ISN’T EVERYTHING
STUDIES SHOW WHAT YOUR NEIGHBOR MAKES MATTERS TO YOU TOO
BUT SOCIAL CLIMBING AND REACHING FOR RICHES CAN BE HAZARDOUS TO YOUR PSYCHIC HEALTH
SO LOOK FOR MORE IN LIFE
AND DO THE RIGHT THING
Source : wsj
Economics is, at its very roots, a study of how to improve human happiness and sense of satisfaction in life.
Mr. Bernanke, a former Princeton professor who was raised in South Caroina, offers a nice tour through the modern body of work, with a personal touch. Some interesting observations:
MONEY MATTERS
BUT MONEY ISN’T EVERYTHING
STUDIES SHOW WHAT YOUR NEIGHBOR MAKES MATTERS TO YOU TOO
BUT SOCIAL CLIMBING AND REACHING FOR RICHES CAN BE HAZARDOUS TO YOUR PSYCHIC HEALTH
SO LOOK FOR MORE IN LIFE
AND DO THE RIGHT THING
Source : wsj
the book The Greatest Trade Ever
Find the story of John Paulson [the book The Greatest Trade Ever] to be particularly fascinating. He made a lot of money from entirely legal ways but may have created a lot of trouble for himself in the process. Now every nice young man wants to be him, and since he did it with derivatives, it's that much worse. His influence has been pernicious in an unintentional way.
Source: By Charlie Munger
Source: By Charlie Munger
Friday, May 7, 2010
Market Focus 5/7/2010
Stock Market Closing Prices – 5/7/10
Dow ( DJIA ) Close - 10380.43 -139.89
Nasdaq Stock Close – 2265.64 -54.00
S&P 500 Close – 1110.88 -17.27
Commodities Closing Prices – 5/7/10
Gold Close - 1210.00 +10.90
Oil Close – 75.11 -1.70
Natural Gas – 4.00
Stocks slumped Friday, with the three major indexes ending in negative territory for the year as investors mulled the Greek debt crisis and the aftermath of one of the most gut-churning days in Wall Street history.
The sell off from the late April highs has been substantial enough that the NASDAQ, with a loss of 10.5%, is now considered to be in a correction.
The Dow and S&P 500 are also approaching double-digit losses, down 7.4% and 8.7% respectively.
The Labor Department reported that employers added 290,000 jobs last month, far more than expected and the biggest jump in four years. However the jobless rate rose to 9.9 percent from 9.7 percent as more people looked for work.
This morning, the SEC said it will investigate to determine what caused Thursday's turmoil.
Expert said the stock market's wild ride may not be over yet.
Dow ( DJIA ) Close - 10380.43 -139.89
Nasdaq Stock Close – 2265.64 -54.00
S&P 500 Close – 1110.88 -17.27
Commodities Closing Prices – 5/7/10
Gold Close - 1210.00 +10.90
Oil Close – 75.11 -1.70
Natural Gas – 4.00
Stocks slumped Friday, with the three major indexes ending in negative territory for the year as investors mulled the Greek debt crisis and the aftermath of one of the most gut-churning days in Wall Street history.
The sell off from the late April highs has been substantial enough that the NASDAQ, with a loss of 10.5%, is now considered to be in a correction.
The Dow and S&P 500 are also approaching double-digit losses, down 7.4% and 8.7% respectively.
The Labor Department reported that employers added 290,000 jobs last month, far more than expected and the biggest jump in four years. However the jobless rate rose to 9.9 percent from 9.7 percent as more people looked for work.
This morning, the SEC said it will investigate to determine what caused Thursday's turmoil.
Expert said the stock market's wild ride may not be over yet.
Stocks try to rebound after a wild Thursday
Stocks were trying to regain ground this morning after one of the most volatile days in stock market history.
Jobs up 290,000; jobless rate rises to 9.9 pct.
The unemployment rate rose from 9.7 percent in March to 9.9 percent in April, mainly because 805,000 jobseekers -- perhaps feeling better about their prospects -- resumed their searches for work.
Jobs up 290,000; jobless rate rises to 9.9 pct.
The unemployment rate rose from 9.7 percent in March to 9.9 percent in April, mainly because 805,000 jobseekers -- perhaps feeling better about their prospects -- resumed their searches for work.
Thursday, May 6, 2010
Safe American Stocks to Own If Europe Crisis Grows
LINK ARTICLE
There are public companies that do almost no business in Europe and some of them only have U.S.-based revenue. If Europe's situation gets worse, they become "safe havens" among equities that trade on American exchanges.
1. The New York Times Company (NYSE: NYT )
2. Sirius (Nasdaq: SIRI )
3. Corrections Corporation of America (NYSE: CXW )4. Southwest Airlines (NYSE: LUV )
5. Beazer Homes (NYSE: BZH )
7. Sprint (NYSE: S - News)
6. NetFlix (Nasdaq: NFLX )
8. Baidu (Nasdaq: BIDU )
9. Fifth Third (Nasdaq: FITB )
10. Sears Holdings (Nasdaq: SHLD )
Europe may get much worse, particularly if it looks like Spain or Portugal might default on their sovereign obligations. Companies with exposure in the region are bound to sell off quickly if the situation there worsens.
There are public companies that do almost no business in Europe and some of them only have U.S.-based revenue. If Europe's situation gets worse, they become "safe havens" among equities that trade on American exchanges.
1. The New York Times Company (NYSE: NYT )
2. Sirius (Nasdaq: SIRI )
3. Corrections Corporation of America (NYSE: CXW )4. Southwest Airlines (NYSE: LUV )
5. Beazer Homes (NYSE: BZH )
7. Sprint (NYSE: S - News)
6. NetFlix (Nasdaq: NFLX )
8. Baidu (Nasdaq: BIDU )
9. Fifth Third (Nasdaq: FITB )
10. Sears Holdings (Nasdaq: SHLD )
Europe may get much worse, particularly if it looks like Spain or Portugal might default on their sovereign obligations. Companies with exposure in the region are bound to sell off quickly if the situation there worsens.
Market Focus 5/6/2010
Stock Market Closing Prices – 5/6/10
Dow ( DJIA ) Close - 10520.32 -347.80
Nasdaq Stock Close – 2319.64 -82.65
S&P 500 Close – 1128.15 -37.72
Commodities Closing Prices – 5/6/10
Gold Close - 1205.00 +8.10
Oil Close – 76.94 -0.17
Natural Gas – 3.91
Stocks take record tumble, the Dow plunged almost 1,000 points Thursday before recovering to close down 348, as erroneous trading in Procter & Gamble and several other stocks sparked a massive selloff.
The selling was a result of technical glitches that caused some stocks, including Dow component Procter & Gamble (PG), to plunge 37% to $39.37 per share from the close of $62.12 Wednesday.
Crude oil dropped to $77.11, down 3.6% on the day.
The market is still weak thought the market came back from the lows of the day. But the fact remains today was a terrible day for stocks. It now looks like the U.S. market has really entered a major pullback that may not bottom until there's real stability in European financial markets.
Stock Market May 7, 2010
U.S. employment report for April. 8:30 a.m.
U.S. consumer credit for March. 10 a.m.
Dow ( DJIA ) Close - 10520.32 -347.80
Nasdaq Stock Close – 2319.64 -82.65
S&P 500 Close – 1128.15 -37.72
Commodities Closing Prices – 5/6/10
Gold Close - 1205.00 +8.10
Oil Close – 76.94 -0.17
Natural Gas – 3.91
Stocks take record tumble, the Dow plunged almost 1,000 points Thursday before recovering to close down 348, as erroneous trading in Procter & Gamble and several other stocks sparked a massive selloff.
The selling was a result of technical glitches that caused some stocks, including Dow component Procter & Gamble (PG), to plunge 37% to $39.37 per share from the close of $62.12 Wednesday.
Crude oil dropped to $77.11, down 3.6% on the day.
The market is still weak thought the market came back from the lows of the day. But the fact remains today was a terrible day for stocks. It now looks like the U.S. market has really entered a major pullback that may not bottom until there's real stability in European financial markets.
Stock Market May 7, 2010
U.S. employment report for April. 8:30 a.m.
U.S. consumer credit for March. 10 a.m.
Stocks slide on fear Greek crisis could spread
Mixed news on the U.S. labor market and retail sales weren't enough to lift stock prices Thursday as worries lingered that Greece's debt woes would spread to other parts of Europe.
The dollar's rise pushed commodities prices lower, especially oil. That sent prices of oil companies like Exxon Mobil and Chevron lower.
In economic news, Labor Department said new claims for jobless benefits fell lass than expected last week. It also said productivity rose more than expected in the first quarter, but that was due in part to a drop in labor costs, which is a negative signal for consumer spending.
Retailers post weak same-store sales.Dow drop 84 points in the morning.
The dollar's rise pushed commodities prices lower, especially oil. That sent prices of oil companies like Exxon Mobil and Chevron lower.
In economic news, Labor Department said new claims for jobless benefits fell lass than expected last week. It also said productivity rose more than expected in the first quarter, but that was due in part to a drop in labor costs, which is a negative signal for consumer spending.
Retailers post weak same-store sales.Dow drop 84 points in the morning.
Wednesday, May 5, 2010
What is EMU?
EMU stands for "Economic and Monetary Union".
EMU is used to refer to the establishment of a European Single Currency. The EMU is a currency where all the participating members are countries of the European Union. The member countries share a single currency (the Euro). The first stage of EMU started in July 1990. It was mainly characterised by the free movement of capital within the European Union. The Euro now exists as a banking currency and paper financial transactions and foreign exchange are made in Euros.
EMU is thought as the introduction of a single currency, this is not the end of the process toward full European economic union, but it is the beginning. Commentators typically predict that it will take 15 to 20 years for a full economic union to evolve.
For the last stage of EMU all EU countries should participate. However as of yet Cypern, Czech Republic, Denmark, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Sweden, and UK have not joined in the monetary union.
Source: Internet
EMU is used to refer to the establishment of a European Single Currency. The EMU is a currency where all the participating members are countries of the European Union. The member countries share a single currency (the Euro). The first stage of EMU started in July 1990. It was mainly characterised by the free movement of capital within the European Union. The Euro now exists as a banking currency and paper financial transactions and foreign exchange are made in Euros.
EMU is thought as the introduction of a single currency, this is not the end of the process toward full European economic union, but it is the beginning. Commentators typically predict that it will take 15 to 20 years for a full economic union to evolve.
For the last stage of EMU all EU countries should participate. However as of yet Cypern, Czech Republic, Denmark, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Sweden, and UK have not joined in the monetary union.
Source: Internet
What are futures?
A future is a contract traded on a regulated commodity exchange; it specifies a future date of delivery or receipt of a certain amount of a specific product or its cash equivalent value at the end of the term of the contract. All futures are exchange-traded contracts and they're standardized in terms of delivery date, amount and contract terms.
Future contracts generally run in length from three months to six months but can go up to twenty-four months in some areas of trade. A futures contract, unlike an option, is a commitment to buy, sell or deliver the underlying product in the future, therefore it is possible to lose more than the initial deposit, unlike options where the risk is limited to the option premium paid.
Traders, banks and other financial institutions often use futures contracts to speculate on the direction of an underlying instrument (including indices).
Stock index futures and financial instruments are not "commodities". It is no longer correct to refer to the futures market as the commodities or commodities futures market unless you are specifically refering to things such as metals, oil, or agricultural products. Actually, the financial futures represent many of the highest volume futures contracts.
Stock Futures are financial contracts where the underlying asset is an individual stock. Stock Future contract is an agreement to buy or sell a specified quantity of underlying equity share for a future date at a price agreed upon between the buyer and seller. The contracts have standardized specifications like market lot, expiry day, and unit of price quotation, tick size and method of settlement.
source : stockmarketforum
Future contracts generally run in length from three months to six months but can go up to twenty-four months in some areas of trade. A futures contract, unlike an option, is a commitment to buy, sell or deliver the underlying product in the future, therefore it is possible to lose more than the initial deposit, unlike options where the risk is limited to the option premium paid.
Traders, banks and other financial institutions often use futures contracts to speculate on the direction of an underlying instrument (including indices).
Stock index futures and financial instruments are not "commodities". It is no longer correct to refer to the futures market as the commodities or commodities futures market unless you are specifically refering to things such as metals, oil, or agricultural products. Actually, the financial futures represent many of the highest volume futures contracts.
Stock Futures are financial contracts where the underlying asset is an individual stock. Stock Future contract is an agreement to buy or sell a specified quantity of underlying equity share for a future date at a price agreed upon between the buyer and seller. The contracts have standardized specifications like market lot, expiry day, and unit of price quotation, tick size and method of settlement.
source : stockmarketforum
Fear index hits 3-month highs
LINK ARTICLE
Wall Street's key volatility measure hit a more than three-month high Wednesday on fears of a European debt crisis and slowing global growth.
The CBOE Volatility (VIX) index, or the VIX, jumped as much as 15% Wednesday to $27.23, before pulling back a bit to close at $24.91.
Wall Street's key volatility measure hit a more than three-month high Wednesday on fears of a European debt crisis and slowing global growth.
The CBOE Volatility (VIX) index, or the VIX, jumped as much as 15% Wednesday to $27.23, before pulling back a bit to close at $24.91.
Market Focus 5/5/2010
Stock Market Closing Prices – 5/5/10
Dow ( DJIA ) Close - 10868.12 -58.65
Nasdaq Stock Close – 2402.29 -21.96
S&P 500 Close – 1165.87 -7.73
Commodities Closing Prices – 5/5/10
Gold Close - 1174.60 +0.00
Oil Close – 80.11 +0.14
Natural Gas – 3.98
Dow drops 59 points on European worries.
The stronger dollar cut into crude-oil prices, which fell below $80 a barrel. Gold futures edged up.
New reports confirm U.S. recovery. A report from Automatic Data Processing showed private-sector employers added 32,000 jobs in April, more than the 20,000 expected by economists surveyed by Dow Jones Newswires. On Friday, the government will release its key monthly jobs report for April. Economists expect the unemployment rate to stick at 9.7%, where it was in March.
CBS results disappoint. Shares of CBS were down 3% after first-quarter results missed analyst estimates.
The fear is alive, weakness crosss the market !
Stock Market May 6, 2010
Initial Jobless Claims - 8:30am EST
Major retailers to report same-store sales for April.
Dow ( DJIA ) Close - 10868.12 -58.65
Nasdaq Stock Close – 2402.29 -21.96
S&P 500 Close – 1165.87 -7.73
Commodities Closing Prices – 5/5/10
Gold Close - 1174.60 +0.00
Oil Close – 80.11 +0.14
Natural Gas – 3.98
Dow drops 59 points on European worries.
The stronger dollar cut into crude-oil prices, which fell below $80 a barrel. Gold futures edged up.
New reports confirm U.S. recovery. A report from Automatic Data Processing showed private-sector employers added 32,000 jobs in April, more than the 20,000 expected by economists surveyed by Dow Jones Newswires. On Friday, the government will release its key monthly jobs report for April. Economists expect the unemployment rate to stick at 9.7%, where it was in March.
CBS results disappoint. Shares of CBS were down 3% after first-quarter results missed analyst estimates.
The fear is alive, weakness crosss the market !
Stock Market May 6, 2010
Initial Jobless Claims - 8:30am EST
Major retailers to report same-store sales for April.
Stocks seesawed on European debt worries
Stocks seesawed in the morning on European debt worries.
The private sector added 32,000 jobs in April, according to the ADP employment report this morning, in line with economists' expectations and the third month in a row of gains.
The private sector added 32,000 jobs in April, according to the ADP employment report this morning, in line with economists' expectations and the third month in a row of gains.
Tuesday, May 4, 2010
Good News: Chesapeake(CHK) posts Q1 profit
After the close, Chesapeake Energy(CHK) reported a blowout quarter as it easily beat earnings and revenue estimates.
Shares of CHK are up 57 cents, or 2.4%, at $24.19 after the company reported better-thenexpected results, revenue up 40.4% at $2.8 billion, versus $2.37 billion expected, and profit per share of 82 cents, 12 cents ahead of expectations.
Shares of CHK are up 57 cents, or 2.4%, at $24.19 after the company reported better-thenexpected results, revenue up 40.4% at $2.8 billion, versus $2.37 billion expected, and profit per share of 82 cents, 12 cents ahead of expectations.
Stages of a Trader (from Bo Yoder)
LINK SITE
Stages of a Trader
Stage One: The Mystification Stage
Stage Two: The Hot Pot Stage
Stage Three: The Cynical Skepticism Stage
Stage Four: The Squiggle Trader Stage
Stage Five: The Inwardly-Bound Stage
Stage Six: Mastery (also from Vad Graifer)
Stages of a Trader
Stage One: The Mystification Stage
Stage Two: The Hot Pot Stage
Stage Three: The Cynical Skepticism Stage
Stage Four: The Squiggle Trader Stage
Stage Five: The Inwardly-Bound Stage
Stage Six: Mastery (also from Vad Graifer)
Market Focus 5/4/2010
Stock Market Closing Prices – 5/4/10
Dow ( DJIA ) Close - 10926.77 -225.06
Nasdaq Stock Close – 2424.25 -74.49
S&P 500 Close – 1173.6 -28.66
Commodities Closing Prices – 5/4/10
Gold Close - 1167.50 -1.10
Oil Close – 82.47 -0.27
Natural Gas – 4.01
Dow drops 225 points as investors worried Greece's problem could spill over to the rest of Europe and in turn, the U.S.
The market's plunge wasn't a surprise to some analysts who have warned for weeks that stocks were due for a retreat.
The dollar rose against other major currencies, especially the euro. The rising dollar also makes it more expensive for foreign buyers to purchase commodities like oil. That hurts demand. Crude oil fell to $82.74 a barrel on expectations that oil supplies grew last week.
Improved economic reports brought little help to stocks. Pending home sales rise. Merck, Pfizer reported better-than-expected results.
Futures trading suggests the market will open lower.
Stock Market May 5, 2010
ADP Employment - 8:15am EST
ISM Services - 10am EST
Crude inventories - 10:30am EST
Dow ( DJIA ) Close - 10926.77 -225.06
Nasdaq Stock Close – 2424.25 -74.49
S&P 500 Close – 1173.6 -28.66
Commodities Closing Prices – 5/4/10
Gold Close - 1167.50 -1.10
Oil Close – 82.47 -0.27
Natural Gas – 4.01
Dow drops 225 points as investors worried Greece's problem could spill over to the rest of Europe and in turn, the U.S.
The market's plunge wasn't a surprise to some analysts who have warned for weeks that stocks were due for a retreat.
The dollar rose against other major currencies, especially the euro. The rising dollar also makes it more expensive for foreign buyers to purchase commodities like oil. That hurts demand. Crude oil fell to $82.74 a barrel on expectations that oil supplies grew last week.
Improved economic reports brought little help to stocks. Pending home sales rise. Merck, Pfizer reported better-than-expected results.
Futures trading suggests the market will open lower.
Stock Market May 5, 2010
ADP Employment - 8:15am EST
ISM Services - 10am EST
Crude inventories - 10:30am EST
Stocks hit hard in the morning
The bears were back, The dow dropped 144 points on oil spill, Europe worries.Pending home sales rise.
Merke and Pfizer reported better-than-expected results.
Merke and Pfizer reported better-than-expected results.
Monday, May 3, 2010
Chinese Philanthropy Comes of Age
Charity Surges on the Mainland as Donations Fall in the U.S.; 'Time for Us to Give,' top Chinese Philanthropist Says .
A real-estate and hotel tycoon's billion-dollar giveaway is the latest sign that Chinese philanthropy has come of age.
Last month, Yu Pengnian said he is transferring his remaining fortune, estimated at $470 million in cash and property, to the charity he founded.
Mr. Yu's gift brings to $1.2 billion the total of his donations to the Yu Pengnian Founation. Hurun Report, a group that ranks China's wealthiest people, calls him the first philanthropist in mainland China to give away more than $1 billion. While Mr. Yu made his fortune in Hong Kong, he is now based in Shenzhen.
Source: wsj
A real-estate and hotel tycoon's billion-dollar giveaway is the latest sign that Chinese philanthropy has come of age.
Last month, Yu Pengnian said he is transferring his remaining fortune, estimated at $470 million in cash and property, to the charity he founded.
Mr. Yu's gift brings to $1.2 billion the total of his donations to the Yu Pengnian Founation. Hurun Report, a group that ranks China's wealthiest people, calls him the first philanthropist in mainland China to give away more than $1 billion. While Mr. Yu made his fortune in Hong Kong, he is now based in Shenzhen.
Source: wsj
Market Focus 5/3/2010
Stock Market Closing Prices – 5/3/10
Dow ( DJIA ) Close - 11151.83 +143.22
Nasdaq Stock Close – 2498.7 +37.55
S&P 500 Close – 1202.26 +15.58
Commodities Closing Prices – 5/3/10
Gold Close - 1182.70 +0.00
Oil Close – 86.06 -0.13
Natural Gas – 3.99
The Dow jumps 143 as Germany's approval of bailout funds for Greece. Meanwhile, Economic reports signaled that consumer spending and manufacturing are strengthening.
The rally was broad, with strength in automakers, semiconductor and computer companies, real-estate companies and airlines.
UAL and Continental hope to create the world's biggest airline. Investors see corporate dealmaking as a positive sign for the economy.
Worries about the BP’s oil spill helped the oil market. Crude oil rose sharply in the morning to as high as $87.15 but fell back to a close of $86.19, up 4 cents on the day.
Stock Market May 4, 2010
Factory Orders - 10am EST
Pending Home Sales - 10am EST
Pfizer will announce quarterly results. Before market open.
Merck will announce quarterly results. Before market open.
Chesapeake Energy(CHK) will announce quarterly results. After market close.
Dow ( DJIA ) Close - 11151.83 +143.22
Nasdaq Stock Close – 2498.7 +37.55
S&P 500 Close – 1202.26 +15.58
Commodities Closing Prices – 5/3/10
Gold Close - 1182.70 +0.00
Oil Close – 86.06 -0.13
Natural Gas – 3.99
The Dow jumps 143 as Germany's approval of bailout funds for Greece. Meanwhile, Economic reports signaled that consumer spending and manufacturing are strengthening.
The rally was broad, with strength in automakers, semiconductor and computer companies, real-estate companies and airlines.
UAL and Continental hope to create the world's biggest airline. Investors see corporate dealmaking as a positive sign for the economy.
Worries about the BP’s oil spill helped the oil market. Crude oil rose sharply in the morning to as high as $87.15 but fell back to a close of $86.19, up 4 cents on the day.
Stock Market May 4, 2010
Factory Orders - 10am EST
Pending Home Sales - 10am EST
Pfizer will announce quarterly results. Before market open.
Merck will announce quarterly results. Before market open.
Chesapeake Energy(CHK) will announce quarterly results. After market close.
Stocks rise on merger , bailout
UAL and Continental will combine to form the world's No. 1 airline,The new airline would be called United Continental Holdings. Greece agrees to a $146 billion bailout.
Manufacturing grows and consumer spending rose 0.6 in March according to government data released Monday.
Manufacturing grows and consumer spending rose 0.6 in March according to government data released Monday.
Sell in May and go away
On Wall Street, there is: "Sell in May and buy again on Labor Day".
It is thought the markets frequently drop in late spring/early summer, is due to the holiday season coming into effect, taking time out from their business, doing fewer deals and selling all current stocks and thus reducing the value.
According to research in the American Stocktraders Almanac, if an investor starts with $10,000 in 1950, invests in the 500 stocks in the Standard & Poor's 500 Index in November and sold in May every year, until 1994, they would now have $492,060.
Had they invested each year at the start of May and sold at the end of October, they would be left with just $9682 - down on their original investment!
Source: Internet
It is thought the markets frequently drop in late spring/early summer, is due to the holiday season coming into effect, taking time out from their business, doing fewer deals and selling all current stocks and thus reducing the value.
According to research in the American Stocktraders Almanac, if an investor starts with $10,000 in 1950, invests in the 500 stocks in the Standard & Poor's 500 Index in November and sold in May every year, until 1994, they would now have $492,060.
Had they invested each year at the start of May and sold at the end of October, they would be left with just $9682 - down on their original investment!
Source: Internet
Sunday, May 2, 2010
Baidu is Splitting Stock 10-For-1;How About Google?
The company announced that effective May 12 it will reset the ratio between its Class A ordinary shares and its American depositary shares. Before, one ADS represented one Class A share; effective May 10, each ADS will represent one-tenth of a Class A share.
That sounds complicated, but what it means is that Baidu is splitting the U.S.-listed stock 10-for-1.
if Baidu is splitting…what about Google (GOOG)? Will they ever split?
(source: barrons)
That sounds complicated, but what it means is that Baidu is splitting the U.S.-listed stock 10-for-1.
if Baidu is splitting…what about Google (GOOG)? Will they ever split?
(source: barrons)
Saturday, May 1, 2010
What is a “put” or a “call” ?
“what is a put?” or “what is a call?”
Puts and calls are terms used when buying or selling options
Buying an option is known as a call and allows you to simulate a long position on a stock, similarly a put enables you to simulate shorting a stock
A call option Is a contract that allows the buyer to buy a stock at specified price at any given time during the time span of the option
A put option Is a contract that allows the buyer to sell a stock at specified price at any given time during the time span of the option
Puts and calls are terms used when buying or selling options
Buying an option is known as a call and allows you to simulate a long position on a stock, similarly a put enables you to simulate shorting a stock
A call option Is a contract that allows the buyer to buy a stock at specified price at any given time during the time span of the option
A put option Is a contract that allows the buyer to sell a stock at specified price at any given time during the time span of the option
Warrent Buffet: The Legend
There was a one hour interview on CNBC with Warren Buffet, the third richest man in the world who has donated $37 billion to charity. (The richest now is Carlos Slim and Bill Gates is the second richest.) Here are some very interesting aspects of his life:
1. He bought his first share of stock at age 11 and he now regrets that he started too late!
2. He bought a small farm at age 14 with savings from delivering newspapers.
3. He still lives in the same, small 3-bedroom house in midtown Omaha that he bought after he got married 50 years ago. He says that he has everything he needs in that house. His house does not have a wall around it nor a fence.
4. He drives his own car everywhere and does not have a driver or security people around him.
5. He never travels by private jet, although he owns the world’s largest private jet company.
6. His company, Berkshire Hathaway, owns 63 companies. He writes only one letter each year to the CEOs of these companies, giving them goals for the year. He never holds meetings or calls them on a regular basis. He has given his CEO’s only two rules. Rule number 1: Do not lose any of your shareholder’s money. Rule number 2: Do not forget rule number 1.
7. He does not socialize with the high society crowd. His pastime after he gets home is to make himself some popcorn and watch television.
8. Bill Gates, the world’s richest man, met him for the first time only 5 years ago. Bill Gates did not think he had anything in common with Warren Buffet (other than money!). So, he had scheduled his meeting only for half hour. But when Gates met him, the meeting lasted for ten hours and Bill Gates became a devotee of Warren Buffet.
9. Warren Buffet does not carry a cell phone, nor has a computer on his desk.
His advice to younger people:
Read
Stay away from credit cards, Invest in yourself. He is prepared, however, and does so regularly, to outline general principles of sound investment. These have a consistent theme and can be summed up like this.
A. Money doesn’t create man, but it is the man who created money.
B. Live your life as simple as you are.
C. Don’t do what others say. Just listen to them, but do what makes you feel good.
D. Don’t go on brand name. Wear those things in which you feel comfortable.
E. Don’t waste your money on unnecessary things. Spend on those who really are in need.
F. After all, it’s your life. Why give others the chance to rule your life.
G. Never invest in a business you cannot understand.
H. Always invest for the long term.
I. Wall Street is the only place that people ride to in a Rolls-Royce to get advice from those who take the subway.
J. If you’re doing something you love, you’re more likely to put your all into it, and that generally equates to making money.
K. Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well.
L. In the short run, the market is a voting machine but in the long run it is a weighing machine.’
Weekend Money Jokes
Joke1
A little boy wanted $100 badly and prayed for two weeks but nothing happened. Then he decided to write a letter to the Lord requesting the $100. When the postal authorities received the letter addressed to the Lord, USA, they decided to send it to President Clinton. The President was so impressed, touched, and amused that he instructed his secretary to send the little boy a $5.00 bill, as this would appear to be a lot of money to a little boy. The little boy was delighted with the $5.00, and sat down to write a thank-you note to the Lord. It said: Dear Lord, Thank you very much for sending me the money. However, I noticed that for some reason you had to send it through Washington, DC and as usual, those jerks deducted $95.
Joke2
A father is explaining ethics to his son, who is about to go into business. “Suppose a woman comes in and orders a hundred dollars worth of material. You wrap it up, and you give it to her. She pays you with a $100 bill. But as she goes out the door you realize she’s given you two $100 bills. Now, here’s where the ethics come in: should you or should you not tell your partner?”
Joke3
A woman proudly told her friend, “I’m responsible for making my husband a millionaire.” “Well what was he before he married you?” the friend asked. “A billionaire.”
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