From 5-day to 3-month MACD trend, it's way overbought. Just saying there's a chance people will take some off the table. Crude inventories were up last 2 weeks but price still jumped.
Hope you still aren't holding GM. According to an SEC filing, they will be issuing 60 billion new shares. Then they will do a 1 for 100 reverse stock split. http://money.cnn.com/2009/05/05/news/companies/gm_shareholders.reut/index.htm?postversion=2009050519
An article on CNBC is now saying based upon a source in-the-know, that BAC will need $34 billion in additional capital based upon the gummint stress tests to be released by the end of the day Thursday. Holy crap.
I think crude will probably trade flat to down over the next few weeks or so. But for future knowledge, don't ever quote any indicator such as MACD, RSI, Stochastics etc... Pro traders will laugh you out the door, as these are generally viewed as nonsense indicators. The big guys just watch price action and volume. I only trade gold, but others at my firm are neutral to bearish on crude at this point. Once you learn the theory of "Max Pain" you will start trading like a god.
Ok fair enough. I actually sold all of my oil 2x ETFs a couple of days ago because I felt it had run up too far, too fast (based on economic indicators around the world), as well as the fact that I can't stand to hold those levered etfs for any length of time due to their frakking tendency to underperform the target. Now I'm waiting for a pullback to buy some leaps on one of the oil field service stocks.
The initial fear was that it would dilute common shareholders, but apparently they can get the money through other means (which is, if you ask me, still bizarre). Citi even bumped up the target price for BAC from $10 to $14.
Interesting. I don't buy it just yet. Somehow the shareholders have got to take a hit here. I bought some FAZ just a few minutes ago at $5.85 thinking this market run up is a little to fast. So far so good
I dumped my FAS yesterday. I didn't want to have it hanging out there with the stress test results pending
How can you bet against the banks? They will never go down as long as there are taxpayers around. Financials are the safest bet around.
Sooooo should I just sell my FAZ while its still worth something? Bought 2000 worth when it was 18 bux
