Despite pervasive weakness in the banks, stocks are offering a respite to the bulls, via a 1.5% spike. Leadership is widespread, minus banks. However, the biggest gains can be found in the metals, specifically RTP, RIO, RS and MT, just to name a few.
In my opinion, Chinese stocks offer a wonderful “Costanza” trade here. As you know, I am long FXI and CHL. In addition, COGO, YZC, EDU, STV and MR look decent, down at these levels.
On the short side, I continue to hold onto my lotto tickets (SRS, DUG, ERY, FAZ), in an effort to, well, hit the lotto.
Just know this: the market cannot run without the banks. So, this rally is very suspect. However, there is room for some “bounceable” upside here. If forced to pick a bank, through knife or gun point, I’d buy BLK, with a tight stop at $103, in order to play a potential bank rally and hedge other bank shorts.
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The Fly is God….break out the oatmeal bowl!
Fly is Jed
Bennet Sedacca
12:20:00 PM
No positions in stocks mentioned.
More pressure on Treasuries
As the market for new issue corporates opens, it should be of no surprise that dealers are hedging these new deals with treasuries.
This is in addition to the gargantuan supply coming from the alphabet soup Treasury.
I maintain by bearish view towards yields, particularly as long as we are in a poor seasonal time of year which ends around Memorial day.
I just wonder what will happen to an economy highly dependent on lower rates.
Bennet Sedacca
12:50:00 PM
No positions in stocks mentioned.
Hybrids-the next problem child?
The market for hybrids, or ‘fixed to floating rate’ securities offered by many banks last year are being unmercifully hammered.
I think the market is beginning to realize, even those that bought ‘under the Fed’s umbrella’ that these securities are in a rather uncomfortable part of the capital structure.
For example the Citi 8.40% hybrid, $6 BILLION of which was offered April 21, 2008 at 100 just traded at 32cents on the dollar. On its way to 0, I would imagine.
Speaking of 0, there are many ‘single digit midgets’ in the banking space now. And a warm welcome to Suntrust (STI) who just joined the club. Construction loans in the Southeast isn’t the place to be these days.
BAC new LODs. How this market continues to rally amazes me. I think it’ll all fall apart the last 30 mins.
This is one of the strangest tapes I have seen in a long time. Financials are getting raped and tech is lagging yet somehow the tape is magically levitating. Must be that damn Merlin again with his market shenanigans.
CAP, BofA .25 cents away from the 4.99 mark. I believe once it hits 4.99, the ride to 3.50 will be next? but who knows.
lol
“the market can’t run without the banks”
and yet it does.
So much for trading what you see.
Fucking riverboat casino
where is DD ?
hilarious action on the part of the bulls to ignore the banks as they attempt to consolidate around zero. Truly the Zach “the middle stooge” Karabell trade. All he’s doing is allowing the bears to lock and load,( while batting his eye lashes) so they might blow the the rest of the hair off that guy’s head and take him right down to the pink leotards he’s wearing under his suit. Looking for this to start around 840 spx (r2)
This Western shoot-up will see alot of RED at the end of the day. BAC is fucked.
Let’s not forget the home builders…
the prof Says:
hilarious action on the part of the bulls……
More hilarious as the Bears try to short after a GENERATIONAL market bottom and governments globally throwing money into the financial system.
Ok BAC now 12 cents off the lows. Financials look to be turning around.
stimulus discussion is back on action, with 75 percent of Americans want Congress to pass an economic stimulus bill.
mail me the check baby!
http://www.cnbc.com/id/28999104
kidstock sucks the zombies dick
mrkcbill is still a homo
sure we will have a down beat. The question is when?
the government stimulus package may keep this trend for a while.
I am amazed how the market shrugs off all the bad news and takes off today. shall we say all the bad news has been “priced in”?
The reason the market’s moving up without the financials is because their weighing is so small now. I can’t remember where I’ve read recently that a 10-point move in IBM would be bigger than the top 5 financials (C, BAC etc.) going to 0. They simply have little effect on the indexes now.
this tape is fried. it’s just gamblers taking the shotgun approach and buying/shorting random shit until they get a hit somewhere.
the action in RIO was interesting yesterday, and it’s running hard today. it’s doing the EOD spike right now.
without a doubt the plunge p team’s favorite movie is Ground Hog Day….
Memo to Deviled Eggs —
$Trannies through the downtrend line, albeit for a very short time.
You keeping an eye out for the swing low?
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By rallying, the market has given Ken Lewis and BAC the middle finger. Lewis doesn’t seem very pleased.
forced allocation of cash sprinkled with short covering
Prof — wife and kids were watching that last night when I got home.
Interestingly, I felt a sense of deja vu.
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Here’s the deal….the government is only concerned with the rich, everyone else (although they claim the stimulus is for the working class) is on their own.
If the government really gave a fucking shit, I mean really gave a flying fucking shit about all working americans, the solution to the actual problem “stimulus” could have worked better if they simply gave out the 1.6 trillion divided equally among every taxpayer.
They already pissed away 700 billion, going to piss away yet another 900 billion now. 1.6 trillion pissed away with zero results for all working class.
Had they simply combined the 2 they could have sent a check for roughly $11,594.00 to the roughly 138 million taxpayers. Every one of us, would have been able to spend the 11,594.00 anyway we wanted to get “righted.”
For the rich the 11,594.00 would have bought another nice watch, for the middle class the 11,594.00 would have paid off some bills, for the poor the 11,594.00 would have bought 966 cases of Miller High Life, or 3 new Mud Bogger trucks to race in the local Mud Bogging regionals this spring…..so everyone wins…….
But no…..
UUP on the uptrend line that started 12/18/08 at $25.60.
Discount the importance of this at your peril, Errol.
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Michael Phelps wandered over to the CAT plant and is firing up the tractors and yelling shit at illegals, courtesy of Rosetta Stone.
Who are the fucking stoned union worker loving money managers manipulating this stock (36,000-lot put order yesterday)? It gapped up this morning, fell, then has been stagnant all day and it’s getting fucking pinned at $30 on these rallies. Do miners now dig minerals from the Earth with popsicle sticks?
new lows ***NEXT*** week! write it down
Cap — I think you caught him saying (a la Trump) “Ya Fiahed!” to Thain.
Artist — lol.
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Buying a little SRS below $58.
ARTIST – The government could have done better and paid off a portion of the mortgage balance for every American with an income under $50k. Or something like that. People don’t want to spend because they are in so much debt and they are scared of losing their jobs. Reducing the debts of the average American is the only way to bring back stability to this country. Spending money is not going to help. Reducing debt is. Going to bed every night thinking about your $50,000 credit card balance, 250k mortgage and 30k car loan especially if you are only making 45k/yr can’t be very pleasant.
Devildog said we would plunge below S&P800 today. That’s strange.
not to worry, I’m “the seller of last resort” and will do my best into the close here…
DD went to make his minimum wage so he can have capital to bet market reach new low by this Friday.
Market up almost 2% and SRS is even.
Sweet.
These low volume rallies that we have had over the last month or so show no signs of holding. Avg. daily volume on the SPY is 368 million today we will be lucky to cross 280 million. I think that there needs to be more volume to worry us bears
Market Internals update at 2:00pmET
– NYSE volume 680M shares, about 6% below its three-month average; decliners and advancers are about even.
– NASDAQ volume 1.2B shares, about 1% above its three-month average; decliners and advancers are about even.
it’s either the ppp team or alfred e. neuman just won the lotto and has decided to play “the stocks.”
Regions’ days are numbered
Prof — it’s the dollar. Should stick here, with UUP on the trend line at $25.60.
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Allright, who tasered the DevilDog and stole his id?
From last thread:
Jake, what are you buying for the SPY bounce to 90 – 92? TIA.
I wanted to know how old you are so that I can understand where the optimism comes from. Obviously, I have mis-read the market and the future and I want to learn more from your group’s perspective. If ‘ya can’t beat ‘em join ‘em. Great call on TBT. Are you buying it here for a breakout? I’ve got a lot to learn.
Even though I’m pretty sure this is not really DD, I will answer.
I’m buying TBT for the decade. WRITE THAT DOWN.
(And if you don’t believe me, check out my pick in Rage’s Contest.)
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