Cara's Commentary & Community Chat, Tues., Jan. 13, 2009

[8:26am ET] Bernanke is in London today to meet with British Prime Minister Gordon Brown and deliver speeches to explain the Fed


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Grym
Grym
January 14, 2009 6:04 pm

Thanks, Bill and CP

westcoaster
westcoaster
January 14, 2009 4:40 pm
Bull Hunter
Bull Hunter
January 14, 2009 2:05 pm

CCJ – Downgraded to Sector Perform @ CIBC

GOOG – Price Target Lowered from $525 to $475 @ Stifel Nicolaus

INTC – Caris & Co. resumes coverage with a Below Average. Price Target = $11.50

vanillabean
vanillabean
January 14, 2009 2:02 pm

quiet group this morning!

does anyone have opinion (backed with reasoning) on direction of slw today?

It looks like a big day in store with all the news. Bin laden has surfaced again…

VB

Grym
Grym
January 14, 2009 1:36 pm
Bill Cara
Bill Cara
Reply to  Grym
January 14, 2009 2:13 pm

Re: “I find simply doing nothing to be the most difficult “decision” of all.”

Grym, glad to see you back. Terrific comment. In this morning’s conference call with the traders, I mentioned the value of doing nothing for the moment, given that we are sitting on so much cash, and somebody said, “But it’s tough because we’re traders!”

Yes, traders are actors. It’s difficult to wait for the market to speak, but there are times when we must.

Bull Hunter
Bull Hunter
January 14, 2009 12:52 pm

Good Morning.

SU – Downgraded to Sector Perform @ RBC

New Coverage:

AMZN – Buy @ Collins Stewart. Price Target = $65
INTC – Sell @ Auriga USA. Price Target = $10

Price Target Lowered:

LLTC – from $28 to $21 @ Global Crown Capital

Ron Sen
Ron Sen
January 14, 2009 11:39 am
ToddinFL
ToddinFL
January 14, 2009 11:15 am

I’ve read some comments here about being stopped out, and/or queries as to hold or sell and wait for a better entry. Purely from a TA standpoint, it is acting very well. The big decline in the stock finally stopped on December 18, which coincided with the highest volume it had ever traded up to that point. That’s very bullish as it suggests that all those who wanted out did so (capitulation), and someone was there to absorb the supply. The action starting on December 29 was even more bullish as volume expanded in a big way, even exceeding the… Read more »

swissrobinson
swissrobinson
January 14, 2009 10:37 am

Did I hear Bernanke making noises about buying bad assets?

Would that keep the Fed occupied and out of the bond game, deflating the speculation in short order?

*sigh*, the speculation of it all…

As one of the Monty Python crew was want to say in ‘The Life of Brian’ Bill, ‘Oh Messiah, give us a sign’

😛

LEs.

NYUGrad
NYUGrad
January 14, 2009 8:33 am

Was going to post my opinion on news about Marcus Schrenker, the “advisor” and also read a wsj article about edward jones “advisors” who still go door to door. but i guess adding discourse at 3am is synonymous to adding it while intoxicated.

Good luck trading tomorrow (couple hours) everyone.

davefairtex
davefairtex
Reply to  NYUGrad
January 14, 2009 8:48 am

Except for those of us who live in asia… 🙂

swissrobinson
swissrobinson
January 14, 2009 8:27 am

Are foreign governments like China holding T-bills?

If so will they accept that sort of paltry return for the short/medium term?

Les.

swissrobinson
swissrobinson
January 14, 2009 8:25 am

Thanks for that Westcoaster.

I dunno. Here’s an alternative view.

http://seekingalpha.com/article/114143-the-fed-s-b

If what Peter Schiff is saying has any bearing (do U know the guy’s reputation Bill?) than this game could change quickly – IF the fed stays out of the bond market. It’s not so much the question of deflation/inflation but that speculators are rigging the game and it’s this I’m betting against.

Just as we’re all betting on those same printing presses that Schiff refers to sending precious metals for a shot to the moon.

LE.s

westcoaster
westcoaster
January 14, 2009 7:06 am

Barry Allan, one of Canada’s top high yield bond analysts in a good interview on BNN worth a listen for his perspective.

He says inflation will be -5 or -6% next 12 -36 months, so yields could fall further (down to 1.5% on long end). Inflation will come in time, but that could be a long way off.

Sold TBT yesterday.

http://watch.bnn.ca/#clip129247

loannetter
loannetter
January 14, 2009 6:44 am

It seems Madoff was just following the leader?

loannetter
loannetter
January 14, 2009 6:34 am

The Financial Bailout as Viewed by Physicians The Allergists voted to scratch it, and the Dermatologists advised not to make any rash moves. The Gastroenterologists had sort of a gut feeling about it, but the Neurologists thought the Administration had a lot of nerve, and the Obstetricians felt they were all laboring under a misconception. The Ophthalmologists considered the idea shortsighted; the Pathologists yelled, ‘Over my dead body!’ while the Pediatricians said, ‘Oh, Grow up!’ The Psychiatrists thought the whole idea was madness, the Radiologists could see right through it, and the Surgeons decided to wash their hands of the… Read more »

Chickenpookie
Chickenpookie
Reply to  loannetter
January 14, 2009 2:29 pm

I liked the joke, it’s good to hear from you too Grym. There’s a major equities sale going on this morning, doesn’t look good right now.

jock
jock
January 14, 2009 4:03 am

It’s all of the wires tonight that Pres. Chavez told his parliament today the Venezuelan CVG state mining company would develop las Cristinas in partnership with a Russian company, pursuant to a joint venture company created in 2008, which he referred to as VenRus. The only JV he could be referring to is with Rusoro. While Rusoro was started by the Agapov group,which currently has 15%, and has some $20M funding from Peter Hambros (2nd largest gold miner in Russia) the largest owner currently is Goldfields of South Africa with 37% Today, Rusoro, Crystallex and Gold Reserve were all down… Read more »

alberio
alberio
Reply to  jock
January 14, 2009 6:25 am

Me thinks once the capital is spent to develop the mines that it becomes nationalized like everything else under Chavez. It escapes me why anyone would invest in the country “hoping” they might be able to keep the profits.

jock
jock
Reply to  alberio
January 14, 2009 6:58 am

Alberio – The concept is to partner with the gov’t, and the hope that they want the partnership to work. Remember how Armand Hammer of Occidental Petroleum worked with the Soviets? In VZ, the gov’t takes 18% off the top of gold mined as taxes. They’ll have 51% of the JV with Rusoro. Gov’ts know they aren’t good operators of businesses. Rusoro is betting Chavez won’t want to kill “the goose that lays golden eggs” …. My impression is that VZ is like Russia; if you play by the gov’t rules and learn to “dance with the music” you can… Read more »

wabrew
wabrew
January 14, 2009 3:41 am

Jack Black

I just checked my commis on Ameritrade on a 200 share trade I did last month. It was $9.99. Do not understand why you and others paid $50..

Question – why all the interest in TBT.

Sure, it will fly when the 20 year treasuries start to move down, but is that likely in the scenario where the fed and treasury are declaring war on higher interest rates? Looks to me like it will mosey around here.

ChrisM
ChrisM
Reply to  wabrew
January 14, 2009 4:24 am

Commission at Fido is $8

swissrobinson
swissrobinson
January 14, 2009 3:39 am

Call me a weirdo but I bought TZA today as a short term hedge to TBT. I figured that bad economic news this week is going to drive stocks down, but I don’t want to let go of TBT just yet. TZA’s on a short leash and if people aren’t panicking out of the market come the consumer confidence and retail earnings report later this week I’ll let it go.

Have a nice day.

LE.s

swissrobinson
swissrobinson
January 14, 2009 3:27 am

It’s 4am and I’m bright eyed and bushy tailed (and still apparently jetlagged from my return from my place Down Under). A response here to several remarks: I pay a 50 USD commission for buying TBT. I do have a time frame that permits me to hold TBT for a few weeks. I’m wary of 2X and 3X inverted ETF’s given their potential for big losses, but having purchased and doubled down at the height of TLT’s prices I’m prepared to wait out a little longer, maybe beyond any further retest of the S&P at 850 that may occur in… Read more »

Chickenpookie
Chickenpookie
January 14, 2009 1:00 am

Did anyone have a take on Steven Chu’s testimony today? I thought he provided some clues on his idea of where the energy industry should be tweaked… “Chu said nuclear energy produces a fifth of the nation’s electricity and 70 percent of the carbon-free electricity and “is going to be an important part of our energy mix.” About domestic oil production, Chu reiterated Obama’s views that some expansion of offshore oil and gas development should be included as part of a broader energy plan. But Chu sidestepped Murkowski’s question on whether he would oppose any reinstatement of a broad ban… Read more »

Lori Smyth
Lori Smyth
Reply to  Chickenpookie
January 14, 2009 3:52 am

Check out HTC on TSX for carbon capture play

jrinbc
jrinbc
January 14, 2009 12:28 am

Vinod:

BAC popped up on the RSI tool tonight in “accumulation” (1 day).
The chart looks interesting, too, as it’s heading for the support line hit in November.
Please keep us posted on your thoughts.

vinod
vinod
January 14, 2009 12:09 am

I posted on saturday 1/11/2009
Plan for coming week is to buy put on city CNP and BYONJ. I think after earning C will be under 5 and BAC under 10. My speculation?

vinod
vinod
January 14, 2009 12:02 am

They should forget about TARP and simulation plan or any other spending plan.
As Bill has said many time, and that is remove conflict of interest in industries
Lower mortgage rate to 4.5%
And cut taxes for business and individual. That will fix the economy. All other plan has similar color of what communist did and that is everything own by government and run by burocrats.
It did not work there and is not going to work here

shark_attack
shark_attack
Reply to  vinod
January 14, 2009 1:30 pm

Let’s at least have respect for the fact that Obama comes sporting the LARGEST stimulus package in the entire history of the Oval Office.

bobbyo
bobbyo
January 13, 2009 11:54 pm

When does the Rsi tool reset with todays results. By the way that tool rocks!
Bob

Illini
Illini
January 13, 2009 11:45 pm

Top 10 Value Destroyers from Morningstar that are rated 5 star (most undervalued):

GE, MSFT, BAC, GOOG …. in order of mkt cap destroyed in 08.

http://tinyurl.com/8vetuo

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