Morning Update
 Pershing Square’s Bill Ackman say ACA Capital Holding likely to go bankrupt. He also says that he doesn’t believe MBI and ABK have adequate capital. Chuck said last night he thought there would be trouble amongst the insurers.Â
Durable goods orders were lower than expected, so were existing home sales. That wasn’t surprising.  Fed Vice Chairman Kohn made statements that lead the markets to believe another rate cut is in the bag for December, and along with short covering, we have quite the rally going on. The close will tell us more of the story on today, so we’ll see you then.
More on this topic
(What's this?)
Moodys: MBIA, Ambac, "Somewhat Likely" to Suffer Capital Shortfall
(naked capitalism, 12/5/07)
MBIA, Ambac Downgrade-Related Losses Estimated at $200 Billion
(naked capitalism, 11/15/07)
It Must Have Been the Egg Nog
(Wealth Daily, 12/20/07)
Wow, Lisa. We agree!!! You said, “the close will tell us more of the story on today”. Well…..it did in a BIG way. The market opened strongly to the upside and continued to gradually work it’s way up to close at the highs of the day for the second consecutive day.
Like I mentioned yesterday, I “think” all of the bad news has already been discounted in the price of the financials. Not to say there won’t be any more bad news (there will be), but this potential bad news has already been discounted into the prices. People have bought the financial stocks with the assumption that more bad news will ultimately be announced. That means they won’t go down much more on bad news, but will go up on good news.
Oil prices are softening. The dollar is firming. Heck, even the retailers are joining in. ANF is poised to break out to a new 52 week high now!
Just admit it…if the DOW were “down” 520 points in 2 days you would be saying that it was because the economy was rolling over. Can you please just admit that this was a very impressive day and that there must be at least a little good news out there somewhere????? I didn’t buy again today, BUT I NEED TO. I can’t hold out any longer.
I knew I would hear from you today
ANF’s 52wk high is around 85.75, so it has a ways to go. It stopped today at a very long term resistance level. It has traded 3 times this year over that level, but hasn’t been able to sustain it. Will it this time? We’ll see.
I can say this was an impressive day, but not for the reasons you think so. And, no, I don’t see the good news out there, unless you consider more inflation good news.
You DO NOT NEED to trade. You are not an addict, but a man with a brain. I know that because you still read our site
Ms Lisa
Thanks for your comments on ANF. It is good to know what you look at on the charts. I can sure see how ANF has not been able to sustain movements above the long term resistance level.