They may have said that, but that's like the mafia telling the columbian drug cartel that crime doesn't pay.
I think this week will be a positive week for the market. I'm positioning my orders to the long side this week. Hopefully, we will see a gap down on Monday,so I can get my orders in cheaper. But I think this week will be much higher than next week. Alot of professional traders I know who rode the bear all the way down, are also predicting strong upside this week. I'm optimistic.
I don't disagree that our debt shouldn't be potentially dowgraded, I just don't think the that the rating agencies have the political capital to do so. By the end of 1Q09, S&P & Moody's are going to be regulated/shaken up hard. I would go as far as to say that there is a decent probability that these companies cease to exist within the next 18 months. Also think that United Tech. is undervalued at these levels barring doomsday. They've done a great job managing growth in China. Even in a doomsday type scenario, I think there will be a flight to quality towards China and presumably their assets there would be worth something.
wow, up 3%. i figured it would go down some more. it seems hard to believe that financials reporting this week is going to go well for the market. i mean you could get horrible results that aren't as bad as people expect, but after BAC sucking it up with their earnings, the rest don't leave me optimistic. maybe i should buy some SDS and just assume that we still have more to go down before we go up even if this week is a somewhat positive week.
Yeah financials' results could be all over the place. A couple of things happened within the industry--UK bailed out RBS, who owns Citizens here, so hopefully that's one less pile of junk Paulson & Co have to buy up. And it looks like Banco Santander is going to buy the remaining 75% that they don't own of Sovereign. Its going to be real interesting to see how Paulson is able to price these MBS deals. Both Wells Fargo and Santander mgmt are traditionally tough negotiators, so it's going to be more difficult to get favorable prices with them than it would've been directly with Wachovia and Sovereign. With Santander making this move, I hope Paulson didn't sit down at the G7 meeting and start promising 80 cents on the dollar.
eventually we will go down more but for now we are oversold. that rally on friday plus the g7 is enough to create a continued burst into the open. over the longer term i just can't see this market maintaining a p/e of 13 with all the deleveraging going on.
That's very true. United Tech is a great company to work for also. I work in the Fire and Security field and they do an exceptional job in motivating their employees and making sure their employees give 100% of their commitment to their job. I know they've started to tap the fire and security market in China and gotten some great accts. I think they've even established a 24 hr monitoring center. i've also heard that skyorky's (i think that's their name) has just renewed their contract with the govt. Skyorky's is in charge of manufacturing the blackhawk helicopter that Army uses in the war in Iraq.
Oh well, I didnt really purchase it. You see, if your an employee of UTC's, whenever an employee gets a degree, the company gives that employee 5,000 in company stock. i.e i got my associate last semester, so the company gave me 5,000 in company stock. Whenever i get my bachelor's I'll get another 5,000 and so on and so forth. This is just one of MANY ways UTC motivates their employees to go to school and stuff. They also pay employees tuition and books up front (not reimbursed, up front). and you don't have to get a degree in the field where your working on. i think whenever i got my option it was selling at 60 dollars or so. At one point last year (December, i think), UTC stock was trading at $90+.
The DOW futures are pointing to a 320+ point jump at the open right now. Monday should be an interesting day - the whole week should be. Any of you guys have any ideas on INTC or RIMM? INTC reports earnings this week. I really want to get in on both of these long term (1-2 years minimum), but I'm torn between "in a recession these stocks may get hit" and "they've already been slammed dummy, buy!". Another group I'm looking into are shipping stocks - they've been completely obliterated thanks to commodities tanking. Also possibly looking into some rail/transportation stocks (BNI?), but I think I may own a bit of those already thanks to Buffett and Berkshire. Any of you guys looking at anything? All I've bought into are a bit of GE last week. I'm still torn between waiting for the inevitable pop and waiting to see if it's sustained or if it's just a temporary spike that just leads to more selling.
Foreign markets are all rocking at the moment - the DAX is up almost 6%, the CAC is up almost 4%, SENSEX up over 6%. DOW futures are bouncing around up between 320-380. Hang on for a wild ride... I think I'm going to head to bed and pray somehow my pre-market limit orders somehow miraculously get filled. DDM and SSO FTW. Hehe.
For those with a long bias into the next few weeks, it might be a better play to go long China (via FXI). It has been relatively strong throughout this meltdown, and will obviously surge with any market strength.
I think BUD would be a good play. They are being bought out by INBEV for $70 by the end of the year. The current price is $58.50. That's about a 20% profit, when you include dividends. Of course, there is the risk that the deal doesn't go through and the stock tanks.
After all this waxing around I finally picked up some aapl. We'll see how this turns out. Wish I had gotten in @ sub-$90.
Dead cat bounce, but it is a good time to buy when this bottoms out again. For anyone with longer than a 10 year time horizon, next month will be a great buying opportunity.
