Saturday, February 28, 2009
8:09 am - U.S. stocks pushed to newer bear market lows
By Geoffrey Rogow Of DOW JONES NEWSWIRESNEW YORK (Dow Jones)--U.S. stocks pushed to newer bear market lows as an expanded federal rescue of Citigroupand a dividend cut for General Electric hit even more of their share values and the broader market.In the last day of trading for February, traders did exactly what they had for most of the month, eitherselling out of or shorting large banking stocks. Pacing off the day's decline, Citigroup closed down96 cents, or 39%, at 1.50, after the U.S. Treasury Department said it is willing to convert up to $25billion of its preferred stock holdings into common stock in a move that would give the government a36% share of the giant bank.Over the last few weeks, concern that banks would need even more capital has damped share prices acrossthe sector. And those few traders willing to even play in banking stocks are mostly holding short positions.According to Data Explorers, a short-selling data research firm based in New York and London, 2.6% ofCitigroup is now out on loan, up nearly 38% from just less than two weeks ago."I don't plan on buying any banks anytime soon. That industry is going to zero, some winners, some losers,"said Keith Walter, a portfolio manager at Artio Global Investors.With the slide for banking stocks, the Dow Jones Industrial Average closed down 119.15 points, or 1.66%,at 7062.93, marking its lowest point since April of 1997 and surpassing its previous bear market lowof 7114.78, hit on Monday. The index lost 302.74 points, or 4.11%, for the week.The Dow, which dropped 12% this month, had its worst February since 1933. During the month, 20 of the30 components reset their 52-week lows, with 13 hitting 52-week lows at some point during Friday's session.Meanwhile, the broad Standard & Poor's 500 fell 17.74, or 2.36%, to 735.09, pushing to its lowest closesince Dec. 18, 1996. The S&P 500 lost 34.96 points, or 4.54%, for the week, and 90.79, or 10.99%, forthe month. Financial stocks in the index paced Friday's decline, losing more than 7%.The Nasdaq Composite Index closed down 13.63, or 0.98%, at 1377.84, though the index remains above itsNov. 20 closing low of 1316.12. For the week, the Nasdaq lost 63.39, or 4.4%, and for the month, it lost98.58, or 6.68%.Further damping the broad indexes, General Electric said its board is expected to slash the dividend to10 cents from 31 cents starting in the second-half of the year. The stock closed off 59 cents, or 6.5%,at 8.51.Investors were also given little to celebrate on the economic-data front as a revised report showed theU.S. economy slumped more deeply than previously thought in the fourth quarter. As the tone on banksand the economy continues to weaken, the government has moved aggressively with both the stimulus packagepassed this week and the latest backstop for Citigroup.Still, that the government has had to come in so aggressively, in itself has given many reason to further stay away from stocks."That the marginal buyer of assets in this country is the federal government is not a good indicationof how free the capital markets are," said Nicholas Colas, chief market strategist at BNY ConvergEx.(David Benoit contributed to this report.)You can use this link on the day this article is published and the following day.-0-Copyright (c) 2009 Dow Jones & Company, Inc.
Friday, February 27, 2009
Thursday, February 26, 2009
Wednesday, February 25, 2009
4:32 pm - Man Fund Talk next week !
Dear Traders Club member,
Your chance to meet Mr Sam Gibson of Man Investments to answer any of your questions as well as the CIO of Phillip Capital Mgt Mr Ang Kok Heng at an exclusive Investment Seminar Talk organised by Phillip Capital Management Sdn Bhd.
You are cordially invited to learn how to enhance your portfolio
Details of the talk are as below:
Date : 3 March 2009 (Tuesday)
Time : 7.00pm - 9.45pm
Venue : Westside Room 1, 2 & 3, Level 8,
Boulevard Hotel, Mid Valley City,
Lingkaran Syed Putra,
59200 Kuala Lumpur (See map attached)
7.00 pm Registration
7.30 pm Alternative Investment Opportunities Through Man Investment
by Mr Sam Gibson of MAN Investment
8.30 pm BREAK*
8.45 pm Trend Following CTA
by Mr Ang Kok Heng, Chief Investment Officer of Phillip Capital Management Sdn Bhd
9.45 pm Question and Answer Session
Please RSVP to myself at 012 685 1207or Susan at 03-2783 0300 or e-mail susan@poems.com.my to register as only limited seats are available. This seminar is free of charge.
Thank you.
Warmest regards,
Bill and Martin
012 685 1207
Your chance to meet Mr Sam Gibson of Man Investments to answer any of your questions as well as the CIO of Phillip Capital Mgt Mr Ang Kok Heng at an exclusive Investment Seminar Talk organised by Phillip Capital Management Sdn Bhd.
You are cordially invited to learn how to enhance your portfolio
Details of the talk are as below:
Date : 3 March 2009 (Tuesday)
Time : 7.00pm - 9.45pm
Venue : Westside Room 1, 2 & 3, Level 8,
Boulevard Hotel, Mid Valley City,
Lingkaran Syed Putra,
59200 Kuala Lumpur (See map attached)
7.00 pm Registration
7.30 pm Alternative Investment Opportunities Through Man Investment
by Mr Sam Gibson of MAN Investment
8.30 pm BREAK*
8.45 pm Trend Following CTA
by Mr Ang Kok Heng, Chief Investment Officer of Phillip Capital Management Sdn Bhd
9.45 pm Question and Answer Session
Please RSVP to myself at 012 685 1207or Susan at 03-2783 0300 or e-mail susan@poems.com.my to register as only limited seats are available. This seminar is free of charge.
Thank you.
Warmest regards,
Bill and Martin
012 685 1207
Tuesday, February 24, 2009
Monday, February 23, 2009
10:04 am - Market Report by Bill Wermine
Dear Traders,
Just returned from Singapore for a business/pleasure trip via Air Asia. Singapore is in a major slowdown because of exposure to the banking and finance industry. Thousands of workers are jobless- there are major department store sales on Orchard Road where we stayed in the Holiday Villa Park View. I bought some high quality Berkshire shirts- I am not sure if this is Warren Buffet's shirt company ? - for a 70 % discount.
Even so customer traffic is light and sales ladies are so agressive to pull you into their shops and get angry if you dont buy. Even traffic at the Singapore zoo was light- only a 3 minute wait to buy a ticket. There were more animals than tourists. The animals however were impressive- including 2 white tigers, pygmy hippos, a polar bear and a herd of mongooses.
The facility was well managed, very clean and very helpful zoo keepers. One explained to me there are only 5000 wild tigers left in the whole planet while in 1900 there were over 200,000. Many of the animals in the zoo are endangered and becoming more endangered due to human greed, pollution and global warming.
I think our world financial system has become disfunctional due to human greed, corruption, mismanagement much as the animal kingdom has been plundered. The zoo had a picture of the last Australian Tazmanian Tiger who became extinct in 1931.
when he died in the Brisbane zoo.
It looks like some major banks, insurance and auto companies such as GM may soon become extinct for the same reasons that so many animal species became extinct.
I met with Tim Peach of Man Investments to get answers to those of you who have concerns.
Bottom line: Your capital guarantee is safe as your money is protected by the AUD government bank deposit scheme. The AUD banks just as Malaysian banks are not involved in credit derivatives, sub prime mortages and the pyramid scheme products that have collapsed the financial house of cards in Europe and the US.
He also explained in detail that Man should perform well in 2009 if everything else goes down the drain.
I had the pleasure to meet with Mr Lim who is the chairman of Phillip Capital. who explained in a simple way how this financial disaster happened and what to expect in the months ahead. He said there will be trading opportunities. He also said if we buy any shares they must have strong cash flow be the strongest of the strong with long term track records- There willbe sharp rallies within the context of the world bear market.
In our next Traders club will share his insights.
Although almost everything in Singapore is on sale there is one thing that is not: I tried to buy some gold maple leafs, Kruger rands and the gold shops are refusing to sell. They say the gold coins in the display case are only for display and not for sale !
Hold on to your gold, it will be very volatile and we may see more upside in weeks ahead.
Have a good week ahead
Bill
Just returned from Singapore for a business/pleasure trip via Air Asia. Singapore is in a major slowdown because of exposure to the banking and finance industry. Thousands of workers are jobless- there are major department store sales on Orchard Road where we stayed in the Holiday Villa Park View. I bought some high quality Berkshire shirts- I am not sure if this is Warren Buffet's shirt company ? - for a 70 % discount.
Even so customer traffic is light and sales ladies are so agressive to pull you into their shops and get angry if you dont buy. Even traffic at the Singapore zoo was light- only a 3 minute wait to buy a ticket. There were more animals than tourists. The animals however were impressive- including 2 white tigers, pygmy hippos, a polar bear and a herd of mongooses.
The facility was well managed, very clean and very helpful zoo keepers. One explained to me there are only 5000 wild tigers left in the whole planet while in 1900 there were over 200,000. Many of the animals in the zoo are endangered and becoming more endangered due to human greed, pollution and global warming.
I think our world financial system has become disfunctional due to human greed, corruption, mismanagement much as the animal kingdom has been plundered. The zoo had a picture of the last Australian Tazmanian Tiger who became extinct in 1931.
when he died in the Brisbane zoo.
It looks like some major banks, insurance and auto companies such as GM may soon become extinct for the same reasons that so many animal species became extinct.
I met with Tim Peach of Man Investments to get answers to those of you who have concerns.
Bottom line: Your capital guarantee is safe as your money is protected by the AUD government bank deposit scheme. The AUD banks just as Malaysian banks are not involved in credit derivatives, sub prime mortages and the pyramid scheme products that have collapsed the financial house of cards in Europe and the US.
He also explained in detail that Man should perform well in 2009 if everything else goes down the drain.
I had the pleasure to meet with Mr Lim who is the chairman of Phillip Capital. who explained in a simple way how this financial disaster happened and what to expect in the months ahead. He said there will be trading opportunities. He also said if we buy any shares they must have strong cash flow be the strongest of the strong with long term track records- There willbe sharp rallies within the context of the world bear market.
In our next Traders club will share his insights.
Although almost everything in Singapore is on sale there is one thing that is not: I tried to buy some gold maple leafs, Kruger rands and the gold shops are refusing to sell. They say the gold coins in the display case are only for display and not for sale !
Hold on to your gold, it will be very volatile and we may see more upside in weeks ahead.
Have a good week ahead
Bill
Saturday, February 21, 2009
8:13 am - US Stocks slide due to Bank.
By Geoffrey Rogow Of DOW JONES NEWSWIRESNEW YORK (Dow Jones)--
Stocks limped their way through Friday's session, with the usual suspects in theDow Jones Industrial Average pushing the bellwether index even further past its bear-market lows.Leading the decliners Friday in the Dow were Citigroup, off 56 cents, or 22%, to 1.95; Bank of America,down 14 cents, or 3.6%, to 3.79; General Electric, down 68 cents, or 6.8%, to 9.38; and General Motors,off 23 cents, or 12%, to 1.77. Overall, five of the 30 Dow components now trade below $10, a previouslyincomprehensible development, with traders saying the idea that buying large company stocks in and ofitself would keep them safe has broken.Despite finishing lower, large banks closed well above their lows of the day. Comments from the WhiteHouse that it wishes to see banks remain in private hands helped pare some declines, though talk of nationalizationstill dominates. Few were willing to hold onto a bank stock over the weekend.
The Financial Select Sector SPDR Fund closed down 1.5% at 7.44, after hitting a low point of 6.85 on the session.Traders have largely bemoaned any nationalization plan, noting that while such a move could benefit shareholderslong-term, should banks' financial assets continue to deteriorate there is an argument that the capitalbasis could evaporate to the point that shareholders would be left with nothing.Not to be ignored for banking stocks was the continued crowd into a "fear trade." Gold prices hit $1,000an ounce early in the session, while Treasury securities gained throughout the day's trade.For equities, the fear trade isn't just to sell stocks but to bet on a decline. Notably, puts, or theright to sell banking stocks, have ratcheted up for the better part of a month. Moreover, short-interestlevels for banking stocks such as Citigroup, Bank of America and even General Electric have moved higherin the past two weeks."It's basically impossibly hard to call a bottom for bank stocks," said Craig Peckham, equity tradingstrategist with Jefferies. "And with the inability of the marketplace to pinpoint any base value forbanks, the loss story and capital-erosion picture continues to drive shorts."Overall, the Dow closed down 100.28 points, or 1.34%, at 7365.67, bouncing back from a midday slide below its October 2002 closing low of 7286.27.While the Dow Jones Industrial Average already hit a more than five-year low, the Standard & Poor's indexgot perilously close and then bounced for part of the afternoon. The S&P 500 Index closed down 8.89,or 1.14%, at 770.05 after hitting a low of 754.23, near its November closing low of roughly 752.The Dow closed the week down 484.74 points, or 6.17%, while the S&P 500 slid 56.79, or 6.87%. The declinefor the Dow was its worst week since the week ended Oct. 10.The Nasdaq Composite Index closed Friday down 1.59 points, or 0.11%, at 1441.23, finishing the week down 93.13, or 6.07%.Further hurting the broad indexes, General Electric, the industrial bellwether that also has large financialexposure, closed under $10 for the first time since Sept. 11, 1995.GE shares have been battered along with the banks and are off 42% for the year to date, with balance-sheet concerns driving much of the slide.Small-cap General Motors was the second-worst performer on the Dow as worries continued over the company's latest recovery plan won't work.Still, despite the broad indexes' moves below November levels, other market indicators have not followedsuit. Notably, the CBOE Market Volatility Index closed up 4.9% at 49.37, well off its November highsYou can use this link on the day this article is published and the following day.-0-Copyright (c) 2009 Dow Jones & Company, Inc.
Stocks limped their way through Friday's session, with the usual suspects in theDow Jones Industrial Average pushing the bellwether index even further past its bear-market lows.Leading the decliners Friday in the Dow were Citigroup, off 56 cents, or 22%, to 1.95; Bank of America,down 14 cents, or 3.6%, to 3.79; General Electric, down 68 cents, or 6.8%, to 9.38; and General Motors,off 23 cents, or 12%, to 1.77. Overall, five of the 30 Dow components now trade below $10, a previouslyincomprehensible development, with traders saying the idea that buying large company stocks in and ofitself would keep them safe has broken.Despite finishing lower, large banks closed well above their lows of the day. Comments from the WhiteHouse that it wishes to see banks remain in private hands helped pare some declines, though talk of nationalizationstill dominates. Few were willing to hold onto a bank stock over the weekend.
The Financial Select Sector SPDR Fund closed down 1.5% at 7.44, after hitting a low point of 6.85 on the session.Traders have largely bemoaned any nationalization plan, noting that while such a move could benefit shareholderslong-term, should banks' financial assets continue to deteriorate there is an argument that the capitalbasis could evaporate to the point that shareholders would be left with nothing.Not to be ignored for banking stocks was the continued crowd into a "fear trade." Gold prices hit $1,000an ounce early in the session, while Treasury securities gained throughout the day's trade.For equities, the fear trade isn't just to sell stocks but to bet on a decline. Notably, puts, or theright to sell banking stocks, have ratcheted up for the better part of a month. Moreover, short-interestlevels for banking stocks such as Citigroup, Bank of America and even General Electric have moved higherin the past two weeks."It's basically impossibly hard to call a bottom for bank stocks," said Craig Peckham, equity tradingstrategist with Jefferies. "And with the inability of the marketplace to pinpoint any base value forbanks, the loss story and capital-erosion picture continues to drive shorts."Overall, the Dow closed down 100.28 points, or 1.34%, at 7365.67, bouncing back from a midday slide below its October 2002 closing low of 7286.27.While the Dow Jones Industrial Average already hit a more than five-year low, the Standard & Poor's indexgot perilously close and then bounced for part of the afternoon. The S&P 500 Index closed down 8.89,or 1.14%, at 770.05 after hitting a low of 754.23, near its November closing low of roughly 752.The Dow closed the week down 484.74 points, or 6.17%, while the S&P 500 slid 56.79, or 6.87%. The declinefor the Dow was its worst week since the week ended Oct. 10.The Nasdaq Composite Index closed Friday down 1.59 points, or 0.11%, at 1441.23, finishing the week down 93.13, or 6.07%.Further hurting the broad indexes, General Electric, the industrial bellwether that also has large financialexposure, closed under $10 for the first time since Sept. 11, 1995.GE shares have been battered along with the banks and are off 42% for the year to date, with balance-sheet concerns driving much of the slide.Small-cap General Motors was the second-worst performer on the Dow as worries continued over the company's latest recovery plan won't work.Still, despite the broad indexes' moves below November levels, other market indicators have not followedsuit. Notably, the CBOE Market Volatility Index closed up 4.9% at 49.37, well off its November highsYou can use this link on the day this article is published and the following day.-0-Copyright (c) 2009 Dow Jones & Company, Inc.
Friday, February 20, 2009
Thursday, February 19, 2009
Wednesday, February 18, 2009
Tuesday, February 17, 2009
Monday, February 16, 2009
Friday, February 13, 2009
10:26 pm - DJIA is testing on average volume.
I wud be careful tonite if DJIA wud break lower. Technically, DJIA has closed just above 7,900 support level.
Thursday, February 12, 2009
3:16 pm - DJIA is testing on low volume.
I expect it to hold on its support tonite. DJIA is likely to close lower.
Wednesday, February 11, 2009
10:48 am - This Saturday, Special Talk + Traders Club Meeting Feb 14, 2009
You are invited for this special talk - Sat, Feb 14 2009, 10 am, CIMB Auditorium, Jalan Semantan
Speakers:
1) Market Outlook 2009 - Nigel Foo, CIMB Analyst
2) Session sharing from traders club member.
3) Building trader confidence & minimizing the struggle with fear - Bill Wermine
4) Special Report on FKLI Futures Trading - Martin Wong
Tuesday, February 10, 2009
5:12 pm - Market Report by Bill Wermine
Dear Traders,
Event: On 14 Feb from 10 AM to 1 PM we are holding our Traders Club meeting at CIMB Auditorium Damansara . (Map attached- the auditorium is next to IBBM) We have Nigel Foo, head of research for CIMB to give a 2009 market outlook and shares to look at. In 2008, He correctly predicted the 42 % drop in the KLSE, the 70 % drop in Crude Palm Oil and the collapse in crude oil.
What is his current forecast ? You would be surprised.
One of our club members from Jakarta is flying over to share his recent trades in the US market + point and figure strategies in the CI CPO futures by Martin. I may speak on opportunities in the China as well as localmarket.
Please confirm your attendance as CIMB will provide refreshments.
Shanghai is up over 22 % from its low and has had an 18 day line change up - one of the most powerful indicators of trend change. This is a Turtle Traders indicator.
PMI figures in China moved from 41.2 to 45.3 % in December stunning the markets who were expecting a drop and the first hopeful sign that the horrific meltdown in the base metals might finally be at a bottom. New orders for exports and production rose strongly indicating that Bejing's 4 trillion Yuan (186 billion RM) stimulus plan has already started to have a positive impact.
Chinese banks have extended about 1.2 Trillion yuan in new loans in January, a monthly record in calls by the government to halt the economies decline.
Copper traders in Shanghai have lifted the red metal over 12 % from the lows while stockpiles have dwindled to a record low.
From a contrary point of view: Before the 75 % collapse in the Shanghai Index, beginning in the 4th quarter of 2007 there was heavy promotion of China Country funds. I counted at least 12 full page ads for China funds.
Many sheeps went to the slaughter house.
For the last few weeks as Shanghai had a powerful rally, I did not see one news ad for a China fund. It looks like the Tigers are quietly buying. For those with Phillip Singapore Wrap acounts we offer several China funds but obviously you need to manage your risks. I can help you choose a good one and if interested give me or Martin a call.
The recovery in China and base metals will definitely support Malaysia, Australia, Korea, Hong Kong stock markets and the AUD Man funds as well as the AUD.
The Chinese as well as most Asian economies are on much more stable footing than the US/ UK. The Chinese economy is run prudently and the banks are sitting on top of huge cash reserves.
The Chinese economy is built on savings and productivity as opposed to the US economy which is built on debt, living and spending beyond ones means. Many big name Investment banks and money center banks are built on a culture of fraud with the collusion of corrupt politicians and SEC regulators. No wonder scared savers have lost trust in the US banks and have rushed into Treasury bonds that pay almost no return. Many prominent US banks are technically insolvent
In China a corrupt banker will be shot at the execution ground with a bullet in the back of his head. In America the corrupt banker will get a multimillion dollar bonus paid by the taxpayer as part of the stimulus bailut plan ! Even the arch con man Bernie Madoff who stole upwards of USD 50 billion from thousands of investors continues to live in luxury in his 4 million condo. Because of his political connections he is untouchable. Some cheated investor hopefully should put a bullet in his head.
I am grateful to be living and working in Malaysia where our financial system is on real ground rather than fantasy land.
While technical analysis concentrate on price and volume, fundamentalists focus on economic forces that drive the economy
. Fundamentists study the cause while technical traders study the effect. Most traders use a combination of both approaches. The problem is that charts and fundamentals are often in conflict with each other. Usually at the beginning of market moves, the fundamentals do not explain or support what the market is doing. These are the critical times which traders looking for certainty and confirmation will miss the boat. Once the market moves the fundamentals are evident but it is too late.
It is like a bouncing ball. The most acceleration happens when the ball hits the support. Once the ball goes up it loses momentum and falls back.
Event: On 14 Feb from 10 AM to 1 PM we are holding our Traders Club meeting at CIMB Auditorium Damansara . (Map attached- the auditorium is next to IBBM) We have Nigel Foo, head of research for CIMB to give a 2009 market outlook and shares to look at. In 2008, He correctly predicted the 42 % drop in the KLSE, the 70 % drop in Crude Palm Oil and the collapse in crude oil.
What is his current forecast ? You would be surprised.
One of our club members from Jakarta is flying over to share his recent trades in the US market + point and figure strategies in the CI CPO futures by Martin. I may speak on opportunities in the China as well as localmarket.
Please confirm your attendance as CIMB will provide refreshments.
Shanghai is up over 22 % from its low and has had an 18 day line change up - one of the most powerful indicators of trend change. This is a Turtle Traders indicator.
PMI figures in China moved from 41.2 to 45.3 % in December stunning the markets who were expecting a drop and the first hopeful sign that the horrific meltdown in the base metals might finally be at a bottom. New orders for exports and production rose strongly indicating that Bejing's 4 trillion Yuan (186 billion RM) stimulus plan has already started to have a positive impact.
Chinese banks have extended about 1.2 Trillion yuan in new loans in January, a monthly record in calls by the government to halt the economies decline.
Copper traders in Shanghai have lifted the red metal over 12 % from the lows while stockpiles have dwindled to a record low.
From a contrary point of view: Before the 75 % collapse in the Shanghai Index, beginning in the 4th quarter of 2007 there was heavy promotion of China Country funds. I counted at least 12 full page ads for China funds.
Many sheeps went to the slaughter house.
For the last few weeks as Shanghai had a powerful rally, I did not see one news ad for a China fund. It looks like the Tigers are quietly buying. For those with Phillip Singapore Wrap acounts we offer several China funds but obviously you need to manage your risks. I can help you choose a good one and if interested give me or Martin a call.
The recovery in China and base metals will definitely support Malaysia, Australia, Korea, Hong Kong stock markets and the AUD Man funds as well as the AUD.
The Chinese as well as most Asian economies are on much more stable footing than the US/ UK. The Chinese economy is run prudently and the banks are sitting on top of huge cash reserves.
The Chinese economy is built on savings and productivity as opposed to the US economy which is built on debt, living and spending beyond ones means. Many big name Investment banks and money center banks are built on a culture of fraud with the collusion of corrupt politicians and SEC regulators. No wonder scared savers have lost trust in the US banks and have rushed into Treasury bonds that pay almost no return. Many prominent US banks are technically insolvent
In China a corrupt banker will be shot at the execution ground with a bullet in the back of his head. In America the corrupt banker will get a multimillion dollar bonus paid by the taxpayer as part of the stimulus bailut plan ! Even the arch con man Bernie Madoff who stole upwards of USD 50 billion from thousands of investors continues to live in luxury in his 4 million condo. Because of his political connections he is untouchable. Some cheated investor hopefully should put a bullet in his head.
I am grateful to be living and working in Malaysia where our financial system is on real ground rather than fantasy land.
While technical analysis concentrate on price and volume, fundamentalists focus on economic forces that drive the economy
. Fundamentists study the cause while technical traders study the effect. Most traders use a combination of both approaches. The problem is that charts and fundamentals are often in conflict with each other. Usually at the beginning of market moves, the fundamentals do not explain or support what the market is doing. These are the critical times which traders looking for certainty and confirmation will miss the boat. Once the market moves the fundamentals are evident but it is too late.
It is like a bouncing ball. The most acceleration happens when the ball hits the support. Once the ball goes up it loses momentum and falls back.
For those with Ameritrade accounts check out FCX Freeport McMoran which is a play on copper. It has formed a classic stage 1, support has been tested 6 times as of this writing and each test is on lower volume meaning selling has dried up. FCX has collapsed from 116 USD per share and is now at USD 27. Risk 20 % from this level with the chance of a 100 % return within 6 months. News is really bad but remember bad news is the friend of the smart money buyers.
Have a good week ahead and continue to focus on high grade blue chip KLSE shares which pay dividends.
Bill
Have a good week ahead and continue to focus on high grade blue chip KLSE shares which pay dividends.
Bill
Saturday, February 07, 2009
10:08 am - Stocks rise as investors look past January jobs data; Senate vote on stimulus looms
FKLI market is expected to gap up on Tuesday if DJIA trend continue to be up.
Stocks rise as investors look past January jobs data; Senate vote on stimulus looms
NEW YORK (AP) -- Investors have taken another big gamble on the government's plans to help the economy -- hoping that this one will finally work.
All the major indexes rose more than 2 percent Friday, including the Dow Jones industrial average, which rose more than 200 points as Wall Street looked past another bleak jobs report and awaited word from Washington about an economic stimulus plan and changes to the government's financial rescue program. The advance helped propel the indexes to their first winning week after four straight weeks of losses, and put the Nasdaq composite in positive territory for the year to date.
The Senate was expected to vote on its version of a stimulus plan that would include a mix of spending and tax cuts. The Senate bill would cost $937 billion; the House already passed a similar version.
Financial stocks led the market as investors also awaited the government's latest revisions to its lifeline for banks. Treasury Secretary Timothy Geithner and other top officials are close to finishing a plan to overhaul the government's $700 billion financial rescue fund. Geithner is expected to announce the changes in a speech on Monday.
Some investors were worried that the changes would involve nationalizing many banks and, in the process, wiping out shareholders. Many investors are hoping the plan will relax rules requiring businesses to assign a value to all of their assets each quarter. Advocates say altering the rule even temporarily could make it easier for banks to lend without worrying about depleting their cash reserves and running afoul of accounting standards.
Investors waiting for word on the government's plans were unfazed by a terrible employment reading. The Labor Department said U.S. employers slashed 598,000 jobs in January, the most since late 1974. The unemployment rate rose to 7.6 percent, the highest since late 1992.
"All focus right now is now is really on Washington," said Dan Cook, senior market analyst at IG Markets in Chicago. He said investors are hoping the unemployment report was bad enough to goad lawmakers into swift action on the stimulus plan.
Scott Fullman, director of derivatives investment strategy for WJB Capital Group in New York, said investors now are wondering "will government stimulus stop this virus that's spreading throughout the country?"
Cook said investors are eager for the stimulus plan to pass even if it takes time to work its way into the economy, as many economists predict.
"We just want to see a plan and have a direction," he said. "We can adjust from there and make moves on the fly."
But analysts caution that the plan won't repair the economy's problems overnight.
"As the realization sets in that this is going to take some time to work its way into the system confidence could wane a bit," said Matt King, chief investment officer for Bell Investment Advisors, in Oakland, Calif. In that case, the market would be following its pattern in recent months as other government steps were unveiled -- early euphoria dissipated as the reality of a troubled economy set in.
The Dow industrials rose 217.52, or 2.70 percent, to 8,280.59 after rising 106 on Thursday.
Broader stock indicators also jumped. The Standard & Poor's 500 index rose 22.75, or 2.69 percent, to 868.60, and the Nasdaq composite index rose 45.47, or 2.94 percent, to 1,591.71.
The day's gains have left the Nasdaq higher for the year; investors have been turning to the index's tech stocks on the belief they will help lead the market higher. The Nasdaq ended the week with a huge 7.81 percent gain, while the Dow was up 3.5 percent and the S&P 500 rose 5.17 percent.
The Russell 2000 index of smaller companies rose 15.62, or 3.43 percent, to 470.70. It rose 6.13 percent for the week.
Advancing issues outnumbered decliners by about 5 to 1 on the New York Stock Exchange, where consolidated volume came to 6.38 billion shares compared with 6.51 billion shares traded Thursday.
On Thursday, the major indexes soared more than 1 percent as Wall Street shrugged off troubling economic reports and searched for bargains among battered retail and technology stocks.
Bond prices were mixed Friday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.99 percent from 2.92 percent late Thursday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.27 percent from 0.26 percent.
The dollar was mostly higher against other major currencies. Gold prices edged higher.
Light, sweet crude fell $1 to $40.17 a barrel on the New York Mercantile Exchange.
Friday's rally reflects fear among some investors that they will miss out on a jump in stocks if the government comes up with the right mix of medicine for the economy, King said. Some of the buying was also likely the result of short covering -- investors who borrowed stock and sold it on expections the market would fall had to buy stock to repay the loans.
Many of the Friday's steepest gains occurred in hard-hit parts of the market like financials and retailers.
Financial stocks rose. Bank of America Corp. jumped $1.29, or 26.7 percent, to $6.13, while JPMorgan Chase & Co. rose $3.09, or 12.6 percent, to $27.63. Smaller banks also rose. Fifth Third Bancorp rose 99 cents, or 60.4 percent, to $2.63. State Street Corp. advanced $2.95, or 10.7 percent, to $30.49.
Among retailers, Macy's Inc. advanced 95 cents, or 10.9 percent, to $9.70.
Overseas, Britain's FTSE 100 rose 1.49 percent, Germany's DAX index rose 2.97 percent, and France's CAC-40 rose 1.84 percent. Japan's Nikkei stock average rose 1.60 percent.
The Dow Jones industrial average closed the week up 279.73, or 3.50 percent, at 8,280.59. The Standard & Poor's 500 index rose 42.72, or 5.17 percent, to 868.60. The Nasdaq composite index rose 115.29, or 7.81 percent, closing at 1,591.71.
The Russell 2000 index, which tracks the performance of small company stocks, rose 27.17, or 6.13 percent, to 470.70.
The Dow Jones Wilshire 5000 Composite Index -- a free-float weighted index that measures 5,000 U.S. based companies -- ended at 8,785.09, up 449.45 points, or 5.39 percent, for the week. A year ago, the index was at 13,418.18.
Stocks rise as investors look past January jobs data; Senate vote on stimulus looms
NEW YORK (AP) -- Investors have taken another big gamble on the government's plans to help the economy -- hoping that this one will finally work.
All the major indexes rose more than 2 percent Friday, including the Dow Jones industrial average, which rose more than 200 points as Wall Street looked past another bleak jobs report and awaited word from Washington about an economic stimulus plan and changes to the government's financial rescue program. The advance helped propel the indexes to their first winning week after four straight weeks of losses, and put the Nasdaq composite in positive territory for the year to date.
The Senate was expected to vote on its version of a stimulus plan that would include a mix of spending and tax cuts. The Senate bill would cost $937 billion; the House already passed a similar version.
Financial stocks led the market as investors also awaited the government's latest revisions to its lifeline for banks. Treasury Secretary Timothy Geithner and other top officials are close to finishing a plan to overhaul the government's $700 billion financial rescue fund. Geithner is expected to announce the changes in a speech on Monday.
Some investors were worried that the changes would involve nationalizing many banks and, in the process, wiping out shareholders. Many investors are hoping the plan will relax rules requiring businesses to assign a value to all of their assets each quarter. Advocates say altering the rule even temporarily could make it easier for banks to lend without worrying about depleting their cash reserves and running afoul of accounting standards.
Investors waiting for word on the government's plans were unfazed by a terrible employment reading. The Labor Department said U.S. employers slashed 598,000 jobs in January, the most since late 1974. The unemployment rate rose to 7.6 percent, the highest since late 1992.
"All focus right now is now is really on Washington," said Dan Cook, senior market analyst at IG Markets in Chicago. He said investors are hoping the unemployment report was bad enough to goad lawmakers into swift action on the stimulus plan.
Scott Fullman, director of derivatives investment strategy for WJB Capital Group in New York, said investors now are wondering "will government stimulus stop this virus that's spreading throughout the country?"
Cook said investors are eager for the stimulus plan to pass even if it takes time to work its way into the economy, as many economists predict.
"We just want to see a plan and have a direction," he said. "We can adjust from there and make moves on the fly."
But analysts caution that the plan won't repair the economy's problems overnight.
"As the realization sets in that this is going to take some time to work its way into the system confidence could wane a bit," said Matt King, chief investment officer for Bell Investment Advisors, in Oakland, Calif. In that case, the market would be following its pattern in recent months as other government steps were unveiled -- early euphoria dissipated as the reality of a troubled economy set in.
The Dow industrials rose 217.52, or 2.70 percent, to 8,280.59 after rising 106 on Thursday.
Broader stock indicators also jumped. The Standard & Poor's 500 index rose 22.75, or 2.69 percent, to 868.60, and the Nasdaq composite index rose 45.47, or 2.94 percent, to 1,591.71.
The day's gains have left the Nasdaq higher for the year; investors have been turning to the index's tech stocks on the belief they will help lead the market higher. The Nasdaq ended the week with a huge 7.81 percent gain, while the Dow was up 3.5 percent and the S&P 500 rose 5.17 percent.
The Russell 2000 index of smaller companies rose 15.62, or 3.43 percent, to 470.70. It rose 6.13 percent for the week.
Advancing issues outnumbered decliners by about 5 to 1 on the New York Stock Exchange, where consolidated volume came to 6.38 billion shares compared with 6.51 billion shares traded Thursday.
On Thursday, the major indexes soared more than 1 percent as Wall Street shrugged off troubling economic reports and searched for bargains among battered retail and technology stocks.
Bond prices were mixed Friday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.99 percent from 2.92 percent late Thursday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.27 percent from 0.26 percent.
The dollar was mostly higher against other major currencies. Gold prices edged higher.
Light, sweet crude fell $1 to $40.17 a barrel on the New York Mercantile Exchange.
Friday's rally reflects fear among some investors that they will miss out on a jump in stocks if the government comes up with the right mix of medicine for the economy, King said. Some of the buying was also likely the result of short covering -- investors who borrowed stock and sold it on expections the market would fall had to buy stock to repay the loans.
Many of the Friday's steepest gains occurred in hard-hit parts of the market like financials and retailers.
Financial stocks rose. Bank of America Corp. jumped $1.29, or 26.7 percent, to $6.13, while JPMorgan Chase & Co. rose $3.09, or 12.6 percent, to $27.63. Smaller banks also rose. Fifth Third Bancorp rose 99 cents, or 60.4 percent, to $2.63. State Street Corp. advanced $2.95, or 10.7 percent, to $30.49.
Among retailers, Macy's Inc. advanced 95 cents, or 10.9 percent, to $9.70.
Overseas, Britain's FTSE 100 rose 1.49 percent, Germany's DAX index rose 2.97 percent, and France's CAC-40 rose 1.84 percent. Japan's Nikkei stock average rose 1.60 percent.
The Dow Jones industrial average closed the week up 279.73, or 3.50 percent, at 8,280.59. The Standard & Poor's 500 index rose 42.72, or 5.17 percent, to 868.60. The Nasdaq composite index rose 115.29, or 7.81 percent, closing at 1,591.71.
The Russell 2000 index, which tracks the performance of small company stocks, rose 27.17, or 6.13 percent, to 470.70.
The Dow Jones Wilshire 5000 Composite Index -- a free-float weighted index that measures 5,000 U.S. based companies -- ended at 8,785.09, up 449.45 points, or 5.39 percent, for the week. A year ago, the index was at 13,418.18.
Friday, February 06, 2009
Thursday, February 05, 2009
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