Bank of America answers, kind of, by saying the deal to acquire Countrywide is still a "go." Guess they had to say something, but, honestly, who believes a thing coming out of that institution. The Dow closed below 13000, but the S&P hung in there to stay above 1400. Oil keeps going up, although the USD managed not to fall off the cliff (hanging by it’s fingernails). Selling into strength hasn’t abated, so keep that in mind as you daytrade. There didn’t seem to be any rhyme or reason to today’s trading, just hit and miss, but there did seem to be some buying interest in the oil/agriculture/metals again.
Some news on the oil front:
US ENERGY SEC BODMAN: WILL SPEAK TO CONGRESS THIS WEEK ABOUT SPR, SCHEDULED TO TESTIFY THURS.
- Notes are doing ‘everything we can’ on prices<USO>UK OIL MINISTER: THE ERA OF CHEAP ENERGY IS "WELL AND TRULY" OVER
- The "psychology premium" on oil is hindering economic growth. (Haven’t heard that one before, "psychology hindering the economy….wow)
Banks are being stingy (out of necessity, I imagine):
FED REPORTS A NEAR RECORD PACE OF TIGHTENING IN LOAN TERMS, CONSUMER BUSINESS LOANS NEAR THREE-MONTH LOW – FED LOAN OFFICERS SURVEY
- 80% of US banks tightened lending, 55% of overseas banks tightened.
- 65% of US banks reported weaker demand in April for subprime loans v January demand.
And Blackrock (BLK) is looking to take some "sludge" off of UBS’s hands. Where some see cow pies (manure), others see sweet chocolate (risky business, Blacky, good luck with that):
IN TALKS TO MANAGE SUBPRIME TAINTED DEBT FOR UBS, FUND WOULD HOLD UBS MORTGAGE ASSETS
- BLK targeting returns in excess of 15%, BLK in talks with other banks to manage assets
- The UBS fund to help bank recover from $38B in writedowns
See ‘yall later!
Recent Posts:
- Taxpayers to the Rescue of Afghanistan Banking Crisis?
- Economic Data and Earnings Schedule for September 2 2010
- Christina Romer Makes a Final Recommendation Before Leaving To Teach Keynesian Economics
- Homebuilder Hovnanian (HOV) Reports Dismal Quarter
- Auto Sales Data for August 2010
- Stock Market Rewind – September 1, 2010
Talk about a bull that won’t die. Oil is hanging in there. My position in DUG has moved down the last couple of days (fortunately on very low volume). I averaged in a bit more, but my stop is at 29.80 in case I am wrong.
I also shorted a bit more POT. Once again it was up on weak volume. It seems like it wants to rollover, but bull runs don’t end very easily. I have a stop around $200.
MU keeps moving up each day. That thing has been on a great run for me.
I bought a small position today in a stock — ICO. It is a coal company with lots of accumulation showing in the recent price action.