The Fed has been been throwing band aid’s on the financial sector for months, ever since the two day period where I rode Lehman (LEH) for 60+% but alas, what is going to happen to the financials is going to happen to the financials.
It is my humble opinion that the goverment needs to, and probably will eventually, let a major bank or two fail and take over Fannie and Freddie’s assets, because it is also my opinion that the debt, once cleared up, will allow new origination of loans followed by a rise in the economy that eventually will make the United States Government money.
This, however, is not the reason I am short Fannie May , FNM , the reason I am short is that in the next week or two I expect a Bear Sterns (bsc) esque panic. I also expect a quick drop after 5$ as there will no longer be joe shmoe internet trader in it as a short, and I expect margin call’s on Fannie longs to start hitting and causing the stock to get roughed up to the point where the stock is down to two and at that point the goverment will come in and buy it up, and heres the kicker, if Russia wants their debt in the companies paid for, they will have to pull out of Georgia.
Michael Phelps is a beast, hes absolutely the top out there, and he crushes all competition. So what does that make him America.
America, F— Yeah.
Yeah, you’d think that when the frech are all like, hey, you guys suck, well blow you away with our overpriced euros, bam, America gives you a nice housing recession in the face.
All im saying is, we are so going to kick europe in the face with a recovering economy, its the only 100% change i can see coming in currency over the next year, as we are definately going to recover first.
If Golds results is not 10x oils results, you may want to play the equlization (on a percentage basis for the year). This is based on my opinion that it is more along the lines of a currency devaluation based selloff, with alittle bit of margin calls added in there for good measure. I personally think that eventually, this will all lead to an actualization of 10 x Oil’s price = Golds price As such, i think an appropriate valuation of oil would be 82.14 in this economy as of writing this. As such, I am long the airlines till 2:30, when the market does this whole, im scared about Russia killing Georgia thing.
I have been watching oil, and with all of this added volitility, oil seems like a good subject for a competition.
So, In order to attract more readers, and as a shameless alexa grab, I have decided to offer up an awsometastic $15 gift card (paid for by recent google add clicks), for guessing the closing price of oil next friday. All entries must be in comments section by thursday, however for every market day earlier you guess, you will recive an extra 5 cents in leeway (and yes this means this winning # could be an impossibly good #)
Im sad to have to report to you guys that publicist Dankika Smith has confirmed that Bernie Mac, actor star of the Bernie Mac show and the Ocean’s series among other things has died. Long time sufferer of sarcoidosis (a condition that causes clumps of cells to fourm on internal organs) Bernie Mac had said his condition went into recession in 2003, and was well enough to make an off color comment in a recent Barack fundraiser. He was recovering from pnemonia, most likely brought on by his sarcoidosis, in a Chicago hospital since august 1st. Publicist, Danica Smith said that he was expected to make a full recovery and that he was responding well to treatment. Unfortunately, has succomed to pnemonia today, more to come as details spread but please post your comments.
In yet another reason that your dollars will soon be worth a tulip bulb.
The ECB keeps the rate at 4.25% this means that the US with its cheap central bank rate, will continue to have a devalued currency compared to Europe and Asia, and that means that everything that we Americans have become so used to will continue to be expensive, this may have the heaviest impact on food producers like General Mills (GIS)
Yes, the commodities cost is killing the producers, its taking them straight into reducing box sizes and thinking were not noticeing. As far as im concerned, until a central bank breaks (and one somewhere will), we should all watch where our money is going, because everythings gonna fail at this rate.
Let me start this by saying Apple(aapl) is heading up to 240, that being said, NEVER BUY AN APPLE. A few months ago I would have suggested buying an apple, but now that everyone has started getting a frigging mac, and making my Iphone that i saved for months for, commonplace, now the sykes trigger has been activated. That is the moment Timothy Sykes gets into something, its no longer cool(I guess i have to stay out of blogging).
The chart pattern that I invented and laid claim to has pulled through, and Minyanville.com’s Todd Harrison even agreed with me, airlines have changed their dna, mutated, kablewi, quid pro quo…. ok, so I took liberty with the english language, sue me, actually dont!
This all reminds me by far of one of my favorite preformances. Jimi Hendrix playing like a rolling stone at the Monterrey international pop festival .
Everything has been getting better, but you better bet theres going to be volitility this morning, keep an eye out for the financial’s and the airlines and you could make some fast money.
Typically bearish for the intraday- the moonite chart pattern has emerged in the charts of many of the airlines, the boston police have been called….
The airlines have suffered a dna shift and are now going down even when oil is, it may be time for a slight retracement and it coudl go over.
My suggestion would be a daytrade, dont wait overnight with these, and dont buy right at the open these stocks are notoriously dropping till about 10:30.
