So why is it lately we get these extreme rallies? In a word short covering. As a quick review shorting a stock is selling the position before you actually own it with hopes of buying it back at a better…
Recent comments from the new (announced 1-26-09) Treasury Secretary Timothy Geithner (Former NY Fed President) to China with a key word towards their currency policy “manipulation” of offsetting exchange rates has set fixed income traders on edge sending Treasury rates…
In our Q 1 2009 Newsletter we mentioned buyouts would be good to see in the Capital Markets. Given the most recent negative movements in the capital markets there may be very reasonable prices for acquiring companies to add to their…
With the majority of the publicly traded companies reporting earnings over the next 3 weeks, investors will begin to get a picture of just how bad things really were at the end of 2008. Most companies will likely paint a…
We will expand more in our Q 1 2009 Newsletter, but in the interest of time we wanted to highlight the key items we are watching currently for positive signs in the capital markets. 1. Very short term treasury rates…
With a holiday shortened week, ahead of us, many are expecting a fairly calm trading week. While we are hoping this will be the case, this week also has the potential to be very volatile. With many professionals already having…
In a stunning announcement the Fed lowered rates by .75% or 75 basis points to an all time low. What is the cause and effect? First, the cause is relatively simple and can be seen in the capital markets. With much…
Another busy week of information lies ahead…Goldman Sachs and Morgan Stanley release earnings before the close tomorrow and then the Fed releases it’s decision on interest rates at lunch time. All that and we are only halfway into Tuesday, the…
There has been much talk between market pundents about the so called “Santa Claus Rally,” which most feel has the potential of happening again this year. While we would not be opposed to seeing a nice rally for the month…
As we open the trading day it looks like the auto makers are set to receive funds from the Government. Given the current economic environment it is important from an employment situation, that this help is funded by our government.…
