February 27, 2009

Global Market Comments for February 27, 2009 Featured Trades: (SILVER), 1) Welcome to the worst case scenario, with Q4 GDP revised down from -3.8% to -6.2%. Q4 will be just as bad, if not worse, then we will find a bottom. Technical analysts were ringing their hands as the Dow hit a new 12 year low and the S&P 500 broke key support at 740. Thank God I don't … [Read more...]

February 26, 2009

Global Market Comments for February 26, 2009 Featured Trades: (GM), (YEN),(YCS) 1) Weekly first time jobless claims soared from 631,000 to 677,000, taking total claims to 5.1 million, a new all time high. General Motors (GM) announced a Q4 loss, and a 6.2 billion cash burn, leaving them with a scant $14 billion left. The company will have to file for bankruptcy when this … [Read more...]

February 25, 2009

Global Market Comments for February 25, 2009 Featured Trades: (C), (BAC) 1) So nationalize the banks already! Get it over with! Call it whatever you want: partial nationalization, temporary nationalization, socialization, liverwurst, or rutabaga. Just get it over with! This tortuous slow drip of on again, off again, stop gap measures is going to cost us more than if we … [Read more...]

February 24, 2009

Global Market Comments for February 24, 2009 Featured Trades: (GOLD), (GLD), (SPG) 1) The Senate Banking Committee holds hearings while Rome burns. The S&P Case-Shiller Home Price Index showed a Q4 fall of -18.2%, the sharpest decline in its 21 year history. Prices in San Francisco fell by 31.2%. We got within 100 points of a 6,000 handle on the Dow this morning, and … [Read more...]

February 23, 2010

Global Market Comments for February 23, 2009 Featured Trades: (C), (XOM), (GM), ($NIKK) 1) The Treasury moved to raise its stake in Citigroup (C) by up to 40% by converting preferred into common, yet another step down the road to creeping nationalism. With C trading as low as $1.20 on Friday, taking its market cap down to a mere $10 billion, does anyone care? The markets … [Read more...]

February 20, 2009

Global Market Comments for February 20, 2009 Featured Trades: (POT), (PBR), ($COPPER), (SCHW) 1) Gold blasts through $1,000 to a new high for the year. Need I say more? 2) Here is another thought about Obama's mortgage bailout plan. It is so small, and helps so few, it isn't really a bail out at all. It doesn't help those with mortgages over $625,000, a … [Read more...]

February 19, 2009

Global Market Comments for February 19, 2009 Featured Trades: ($GOLD), (DGP), (GLD), (WFC), (EPD) 1) GOLD! GOLD! GOLD! This is the cry being heard worldwide by investors in the Great Gold rush of 2009, looking for a generic 'short America' trade. Where in the past gold seekers used sluices, shovels, and jackhammers to extract the glittery stuff in California's … [Read more...]

February 18, 2009

Global Market Comments for February 18, 2009 Featured Trades: (NAT) 1) Obama's mortgage bailout package is out, and the market didn't care, hitting new six year lows. After wading through pages of arcane, mind scrambling detail, it appears that $75 billion will be made available to distressed homeowners to cut mortgage payments to 31% of their income. It allows cram … [Read more...]

February 17, 2009

Global Market Comments for February 17, 2009 Featured Trades: (TM), ($GOLD), ($SSEC) 1) In three short weeks we have gone from an administration that had a political interest in portraying the economy as not as bad as it really was, to one that paints the economy as worse than it really is. The markets don't like it. It says a lot that the Dow is taking a run at a new six … [Read more...]

February 13, 2009

Global Market Comments for February 13, 2009 Featured Trades: (ABX), FCX), (GOLD) 1) We learned yesterday that not only does the Obama administration watch the stock market carefully, it also has a technical analyst on board. We were exactly at a crucial support point on the charts when the Treasury leaked the home mortgage subsidy plan, triggering a ferocious 300 point short … [Read more...]

February 12, 2010

Global Market Comments for February 12, 2009 Featured Trades: (DEO) 1) Those who believe that the wine and spirits business is recession proof should take a look at UK based Diageo (DEO). Its shares just hit a new low for the year of $50, down 42%. Although the giant purveyor of alcoholic beverages posted profits up 18% in the recent half, CEO Paul Walsh says that a … [Read more...]

February 11, 2009

Global Market Comments for February 11, 2009 Featured Trades: (IWM), (LSE-AJG), (BAC) 1) After the passage of an $800 billion in stimulus, and another bank bailout package, I don't see any market boosting events on the horizon. Hence the Dow's 400 point swan dive yesterday. The market is not going to wait until the end of the year for all of this stuff to work. … [Read more...]

February 10, 2009

Global Market Comments for February 10, 2009 Featured Trades: (IWM), (C), (BAC), (INTC) 1) Treasury Secretary Tim Geithner announced his bailout plan and the market gave him a big raspberry. Long on platitudes and short on specifics. The Dow plummeted 381, Bank of America (BAC), dropped 18%, and Citigroup (C) pared 16%. The 'End of the World' trade is back on … [Read more...]

February 9, 2009

Global Market Comments for February 9, 2009 Featured Trades: (IWM), ($COPPER), (DRYS) 1) This week it is all about Washington. CNBC has turned into CSPAN. Democrats coming off an eight year starvation diet are loading the stimulus plan with more pork than a bacon factory, and sending Obama the bill. There is also a personal element of payback going on here by the former … [Read more...]

February 6, 2009

Global Market Comments for February 6, 2009 Featured Trades: (BAC), (TM), (TBT) 1) The dreaded January nonfarm payroll came in at minus 598,000, the third monthly figure over a half million, taking the unemployment rate up to 7.6%. It was the worst monthly reading since 1974. We'll probably see 9% by June. Notice how the numbers always come in worse than expected, with … [Read more...]

February 5, 2009

Global Market Comments for February 5, 2009 Featured Trades: ($GOLD), ($SILVER), (BRK/A), (GS), (GE), ($SSEC), ($BDI) 1) UBS was matched by Goldman Sachs in raising its 2009 target for gold ($GOLD) up to $1,000, triggering a $30 rally to $920.While jewelry demand from India and the Middle East remains weak, this is being more than offset by the ongoing financial crisis … [Read more...]

February 4, 2009

Global Market Comments for February 4, 2009 Featured Trades: (FCX), (CAT), ($BDI), ($BVSP), (EWC), (EWZ), (EWA) 1) There is a rare anomaly in the markets now, where mining stocks are trading at huge discounts to the metals they mine. Usually they trade at substantial premiums. This is the result of the credit crisis, as well as a global multiple compression that is … [Read more...]

February 3, 2009

Global Market Comments for February 3, 2009 Featured Trades: (SQM), (CGW), (TIP) Special 'Invade Bolivia' Issue 1) Politicians, industrialists, and environmentalists who see battery powered vehicles as the wave of the future are overlooking the fact that 50% of the world supply of lithium comes from impoverished, landlocked Bolivia. This is a country that until now … [Read more...]

February 2, 2009

Global Market Comments February 2, 2009 Featured Trades: (BX) One month into the year, let's review where we are among major asset classes: '¢ Stocks are down globally and falling. The Dow is down 10% year to date. '¢ The long Treasury bond bubble has popped. Corporate bonds of all grades are on a tear. '¢ There is a bull market in gold … [Read more...]