Cara's Commentary & Community Chat, Thurs., Apr. 30, 2009

[7:35am ET] So what happened after I tried to focus the Community on volatility yesterday morning?

There are occasional days in the market when we do our set-ups that we sense volatility. Today is one of those. We have been watching the sell-off of the high volume, high-beta, high-tech stocks (RIMM, AAPL, AMZN, BIDU and QCOM) into the broad market strength on Friday and again yesterday, which we noted in today

Cara’s Commentary & Community Chat, Thurs., Apr. 30, 2009

[7:35am ET] So what happened after I tried to focus the Community on volatility yesterday morning?

There are occasional days in the market when we do our set-ups that we sense volatility. Today is one of those. We have been watching the sell-off of the high volume, high-beta, high-tech stocks (RIMM, AAPL, AMZN, BIDU and QCOM) into the broad market strength on Friday and again yesterday, which we noted in today

Daily Report for Wednesday, Apr 29, 2009

[8:32am ET] After reaching the session high late in the day, the US equity market suddenly slid downward to a closing loss. Financial names are also in the spotlight today with reports indicating that regulators have told Citigroup and Bank of America that they may need to raise more capital based on early results of the stress test. Both banks have objected to these findings and are expected to respond, and this has taken the Financial sector sharply lower today.

Daily Report for Tuesday, Apr 28, 2009

[9:29am ET] Fears of a Swine Flu pandemic is the latest albatross pulling down global markets. Traders bid up Hospitals ($RXH +2.3%), Pharmaceuticals ($DRG +1.6%) and Biotech ($BTK +0.8%) on Monday.

GM restructuring, including the elimination of a further 21,000 hourly jobs, the end of the Pontiac brand, and a proposed equity for debt swap, also grabbed traders

Cara's Commentary & Community Chat, Tues., Apr. 28, 2009

[7:38am ET] Wall Street Journal has reported that Bank of America and Citigroup will be directed by the US monetary authorities to raise more capital. This begs the question why not JP Morgan. After all, these three banks had captured 95% of the Credit Default Swap business, and CDS was the heart of the problem.

I have a theory on what happened here, mostly speculation on my part, but one that I have discussed before.

Cara's Commentary & Community Chat, Mon., Apr. 27, 2009

[6:38am ET] As in life, conflict is always present in the business and financial world. Today, this war theater is in elevated motion. The impact is being felt in equity markets around the world.

The Mexican-American border may soon be shut over the outbreak of swine flu that apparently has already killed over 100 people. Like SARS, a Swine Flu pandemic could significantly impact the global economy. A worst-case scenario has been tabbed at costing $3 trillion and a loss of 4.8% global GDP.
http://tinyurl.com/8bar9
http://tinyurl.com/22ezbq

Cara's Commentary & Community Chat, Sat., Apr. 25, 2009

[1:28pm ET] As an extensive user of put and call options, my trading team is able to effectively manage accounts that run the gamut from the most conservative to the most speculative, in the most volatile market conditions, just using equities of several Cara 100 companies.

I often say that, based on equity derivatives of a single company like IBM or Exxon for instance, I can meet the needs of clients who otherwise would be invested in anything from low-risk bonds to high-risk penny stocks.

Cara's Commentary & Community Chat, Fri., Apr. 24, 2009

[7:21am ET] During this extended period of unstable capital markets, we have long pointed out that there must be transparency and accountability for volume to return and the markets to recover. Finally, an issue has broken that puts us at a crossroads.

At the end of this week, a remarkable incident has put the public one step away from learning the truth as to how the financial system and the capital markets are being controlled, and by whom.

Cara's Commentary & Community Chat, Wed., Apr. 22, 2009

[7:52am ET] I have yet to hear a logical explanation as to when the financial system crisis will be over, and why. But the more I read leads me to believe it could take a couple years.

The IMF, which is doing research in this area, has published an extensive paper called the Global Financial Stability Report. Here is the link to Chapter 1:
http://www.imf.org/external/pubs/ft/gfsr/2009/01/pdf/chap1.pdf

The IMF website contains the links to all chapters:
http://www.imf.org/external/pubs/ft/gfsr/2009/01/index.htm

IMF summarizes their report’s opening chapter as follows:

Cara's Commentary & Community Chat, Fri., Apr. 17, 2009

[9:35am ET] The amount of government in our lives has become overwhelming. I believe the problem has a lot to do with lobbyists who have become very sophisticated and well-funded. Something must be done before the largest capital market in the world seizes up from non-confidence.

Anyone who operates in Hong Kong or Singapore must be having a good laugh these days. I have been giving serious thought in joining them

Cara's Commentary & Community Chat, Mon., Apr. 13, 2009

[8:06am ET] Now that this is earnings season, the story of the week, I believe, will be the close scrutiny of the leading banks that will be demanded by US taxpayers. People are angry over the lack of full disclosure coming from Humungous Bank & Broker, and they are demanding much greater transparency with respect to TARP, TALF and stress tests, plus independent investigation possibly leading to prosecution.