I just have to share this link ( http://overhedged.blogspot.com/2008/01/little-noted-case-regarding-credit.html) which shows a real life example of why all the derivatives that financial institutions around the world use to hedge their positions may be completely worthless when it gets to crunch time. Very infromative and frankly a bit disconcerting as well. Have a wonderful woo hoo day! [more]
The bounce off of the 150 point loss at the open to the current 100 point gain sure smells like the PPT hard at work. Hmmm!! One of these days a trader like Soros is going to call their bluff and then we will really see the fireworks explode!! I wish all of you a woo hoo day!
Lol! I thought I would pass on a nice link from the FT ( http://www.ft.com/cms/s/0/ea718bb4-ce9d-11dc-877a-000077b07658.html ) which highlights how " risk of bankruptcies among the big US homebuilders has risen sharply ". I thought the parts about the credit default swaps were very informative. They stated that Standard Pacific, Hovnanian, Beazer and Meritage were the most likely builders to fail. (SPF, HOV, BZH, & MTH) Have a wonderful woo hoo day! [more]
Hi all! For the record I don't pretend to have the inside scoop on this sector (like FloridaBuilder) but I do like to pass along good information on any stocks when I see it :) My link of the day is from Steve Sjugerrud's Daily Wealth ( http://www.dailywealth.com/archive/2008/jan/2008_jan_24.asp ). The article by Tom Dyson suggests the the Home Building sector has bottomed by pointing out in the last 2 weeks that the S&P 500 has declined 6% while the Home Builders ETF (ITB) has risen 13%. Perhaps now is the time to jump back into this sector? Of course I would say from my own investing experience that it is really hard to pick bottoms in any sector. The positive side is that the Fed is just flooding the market again with cheap credit (well that could be bad too!) and the negative side is that this sector needs to consolidate but that hasn't happened yet. I personally am not ready to go long on this sector in a big way although I might buy a few LEAP call options on KBH for the long term at this point. I wish all you Fools out there a wonderful woo hoo day!! [more]
Well the question I posed yesterday was answered very quickly: the Fed cuts 75 bps before their scheduled meeting. I think the signal to the world is that the Fed will do whatever it takes to maintain order in the markets. I don't think that they want to face a "meltdown" scenario if they can help it. I am sure that there is more market fun on the way so stay tuned! Have a wonderful woo hoo day!
The downside action on the overseas Markets is quite sobering: Almost all of them were down by 5% or more in Monday trading. Even more telling was the fact that S&P 500 futures were down 4.5% in limited trading today. I wonder if the President has called the Plunge Protection Team into emergency session as of yet? The other question that begs asking: Will the Fed pull the trigger on an inter-meeting rate cut?? Whatever happens I know that I will be watching ever so closely! I wish all Fools a woo hoo day! [more]
The new trade that I have currently opened are the Jan 10 calls (5) on CDE. Coeur d'Alene Mines is currently ramping up production markedly and I feel these calls will do very well as silver and gold continue to climb. I am expecting more than a double on these calls. I wish all of you a woo hoo day!
Woo Hoo! :) I closed this trade this morning after MBI fell below 12.50 this morning and pocketed a 108% profit net of fees in only 5 trading days!! That certainly is now my best short-term trade ever but I have a feeling my longer term AUY calls will surpass that soon. Have a wonderful woo hoo day!
It looks like my Caps renk will break above 10,000 too soon so it really is looking good here! :) Woo Hoo!! My AUY Jan 09 calls are about 55% higher already and my MBI puts are up 40% as well. I will let the AUY calls ride for awhile longer (OK maybe a lot longer!) but I will probably take my profits soon in the MBI puts. I have another trade that I really want to do but I only allow myself a limited amount of capital to trade options :) The time is now for gold and other commodities it seems. I wish all of you a woo hoo day!! [more]
:) Wishing you all a woo hoo New Year! I have now decided to purchase a put on MBI (small position on the May 2008's) as I feel the garbage is still flowing downhill on the bond insurers. Honestly unless the Feds bail out this sector (still Possible!) I can't see a big downside to this bet. My AUY call are looking golden so far as they are up about 15% so far. Have a wonderful prosperous woo hoo New Year!