So what happened today? Nothing but a healthy pullback to the 50 day moving average.
I want to see the market bounce here. If we linger around the 50 day moving average, the market will favor the downside. We need to see the moving average act as a spring, and that is what I will be looking for.
Today’s action was really nothing to worry about, in my opinion, as strength was found all over the market especially in the financials. Regional bank stocks, specifically Pacific Capital Bancorp [[PCBC]] , Huntington Bancshares Incorporated [[HBAN]] & Frontier Financial Corporation [[FTBK]] ripped today. Huntington Bancshares Incorporated [[HBAN]] reports in the am, so continue to keep a close watch on the financials.
Google Inc. [[GOOG]] fell in afterhours due to a great earnings report, imagine that? I’m not quite ready to get behind the stock just yet, but a little lower and I’ll be all over it. Google Inc. [[GOOG]] has also been a great tell for market direction, so where GOOG goes, so does the market. Keep an eye on it.
But, with our government, who knows what the market will do? Which is why on weakness, I will buying puts in American International Group, Inc. [[AIG]] , and shorting Citigroup Inc. [[C]] all the way to the ground.
AIG is on the verge of a significant breakdown.
If you enjoy the content at iBankCoin, please follow us on Twitter
Sounds like a plan.. yes indeed and google is the tell!
What happened today? I love what has happened this week!
I am locked and loaded…………….
The last few weeks have been dead boring. Charts are finally looking delicious………..
Finally Bama’s administration has done something worthwhile…….pigs always show true colors….. I banked me some fucking coin!
I’m about to slow my roll
I just did, let me know when you find they right mixer shrooms.
Excerpts from Citigroup on The GOOG tonight:
Positives & Negatives Largely Balanced – Positives: 1) Operating margin results; 2) TAC costs dropping; Negatives: 1) No expectations blowout; 2) No fundamentals blowout. Paid Click (+13% Y/Y) & CPC (+5% Y/Y) trends largely as expected.
Maintaining $640 PT
Reiterate Buy — Our Long Thesis is: 1) The worst of Macro headwinds are now behind GOOG; 2) CPCs – GOOG’s most important cyclical driver – have turned; 3) Paid Click growth is stable (and may accelerate with SmartPhones); 4) Moderate Capex/Personnel Spend & New Discipline imply n-t margin expansion; 5) EPS quality continues to improve; 6) Mobile Search momentum is building; & 7) Display Advertising/YouTube continue to build as large & profitable opportunities.
The Pitch & The Overhangs — @ $558, one can buy GOOG at 17X ’10 EPS (ex- Cash). So one can buy GOOG (w/25%+ growth) at a Market Multiple in advance of its easiest comps quarters & before the likely positive impact on GOOG’s P&L from Mobile, Display & New Ad Formats is apparent. Overhangs: China, Apple relationship, Nexus One de-leverage impact.
AIG – I concur. What puts are you looking at?