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
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