Comments on: Updates on Market, Washington Mutual, Freddie Mac (4:00pm Market Close)

By: Inside Wall Street: The Fannie Mae/Freddie Mac Bailout is Necessary - But Don't Expect a Happy Ending

Tue, 15 Jul 2008 00:15:04 +0000

[...] Mac was yesterday (Monday) scheduled to auction off $3 billion worth of 3-month and 6-month notes (they reportedly sold), the rescue was [...]

By: JohnK

JohnK — Mon, 14 Jul 2008 20:12:22 +0000

Yes, had a nice day with various puts and large GLD/SLV positions. We’ll see after tomorrow where I suspect Intel earnings will be an important one. Tech in general has been fairly resilient thus far in this downdraft. If they miss or provide light guidance, the tech shoe may drop in earnest. I suspect the latter but I’m not sure Intel is a good gauge for tech in general either way.

By: Eddie K

Eddie K — Mon, 14 Jul 2008 19:40:56 +0000

NEW YORK, July 14 (Reuters) – The fair value of the Standard & Poor’s 500 .SPX, the broadest gauge of major U.S. stocks, is at 1,400, based on a 6 month to 12 month view, Abby Joseph Cohen, Goldman Sachs’ senior investment strategist, said on Monday.

Based on this I’m sure your’e all ready to dive right in on the long side. What a permabull clown.

By: JohnK

JohnK — Mon, 14 Jul 2008 19:00:30 +0000

I’m looking for weakness into the close. The regional banks are getting crushed today ala MTB. I should have keep my MTB puts a few weeks back. woda been a 2 or 3 bagger. Oh well….

By: Jim

Jim — Mon, 14 Jul 2008 17:16:29 +0000

Relative to offshore drilling. First of all, I was referencing world wide most of new large activity is offshore drilling controlled by “host countries”. These host countries do not have the expertise to handle complex offshore projects e.g. Mexico.

As some point, the USA will start to aggressively drill offshore. It may be 3 or 5 years but the day will come when you can’t warm your home, get gas for your car, or find food in the store, the public will demand a crash program.

Again there are only a few Companies that have this technology. About one year ago, GE bought Vetco-Gray (one of the best in this area). GE saw the future was in offshore drilling, not consumer related financials.

By: JohnK

JohnK — Mon, 14 Jul 2008 16:45:45 +0000

Good point. I have to say I was at the Jersey Shore this Sat and it was packed but $7 gas may put a dent their business. Anyway if price reached that high everything will be hurting and not just shore business. Whatever the case I’m not a big fan of drilling for more oil since its just a band aid for problem that should have been tackled long ago. I guess what I’m saying is…. we’ll have $7 gas, if it happens, with or without drilling offshore. Its not THE solution we need.

But investing in drilling companies is probably a good idea since they’ll be scouring the earth for oil whether its off US shores or not.

By: ecklebob

ecklebob — Mon, 14 Jul 2008 16:35:35 +0000

JIM ROGERS SAYS:—“I don’t know where these guys get the audacity to take our money, taxpayer money, and buy stock in Fannie Mae,” Rogers, 65, said in an interview from Singapore. “So we’re going to bail out everybody else in the world. And it ruins the Federal Reserve’s balance sheet and it makes the dollar more vulnerable and it increases inflation.”— “These companies were going to go bankrupt if they hadn’t stepped in to do something, and they should’ve gone bankrupt with all of the mistakes they’ve made,” Rogers said. “What’s going to happen when you Band-Aid and put some Band-Aids on it for another year or two or three? What’s going to happen three years from now when the situation’s much, much, much worse?”— “They’re ruining what has been one of the greatest economies in the world,” Rogers said. Bernanke and Paulson “are bailing out their friends on Wall Street but there are 300 million Americans that are going to have to pay for this.” (Source:Bloomberg.com)

By: doc1

doc1 — Mon, 14 Jul 2008 16:17:05 +0000

“Think if all the opposition from the businesses at the beach. An oil spill would be devastating to to the Jersey Shore, Delaware, and countless other beaches on the East and West coast.”

But JohnK who’s gonna go to the beaches with gas at $7/gal? Not many. So who’ll really care?

I say drill.

By: Dave

Dave — Mon, 14 Jul 2008 16:08:00 +0000

Check out WM (Washington Mutual). It is closing in on very significant support levels……..zero. Your downside risk on this stock is only about $4. Almost like buying an option now.

By: ecklebob

ecklebob — Mon, 14 Jul 2008 14:49:52 +0000

The sharks are just begging the homegamers to keep running FNM and FRE up so they can keep selling into the stupidity of the CNBC brain dead.