UPDATE: Trading Stock In This Year’s Financial Crisis

Lately, it seems as if when the indices are down almost all stocks are down for that day – regardless of industry. I’ve noticed that the announcement of positive third quarter earnings has little positive influence on stocks right now. McDonald’s beat Wall Street’s estimates last Wednesday. What happened that day? In general stocks were down, MCD was up for maybe 1/3 of the day and it ended up trading down. What happened the day after? The stock was down. McDonald’s has beaten Wall Street’s estimates for the past three quarters. Yet, it has continued to trade lower. This shows that this is a day trader or short term trader market. It is very volatile out there. When you see giant banks like Bank of America, Goldman Sachs, and Morgan Stanley make 15-30% swings on non-earnings and little information, you can guess it’s a result of a lot of random speculation. This doesn’t mean it is necessarily dangerous. It just means, we have to be extra cautious. Take quick profits or if you are a long term trader, this may be a great time to buy.

In any case, I have added to my BAC position last Friday. I probably entered it a bit early, which is fine. I’ve missed big moves playing it “too safe”.

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UPDATE: Trading Stock In This Year’s Financial Crisis

Lately, it seems as if when the indices are down almost all stocks are down for that day – regardless of industry. I’ve noticed that the announcement of positive third quarter earnings has little positive influence on stocks right now. McDonald’s beat Wall Street’s estimates last Wednesday. What happened that day? In general stocks were down, MCD was up for maybe 1/3 of the day and it ended up trading down. What happened the day after? The stock was down. McDonald’s has beaten Wall Street’s estimates for the past three quarters. Yet, it has continued to trade lower. This shows that this is a day trader or short term trader market. It is very volatile out there. When you see giant banks like Bank of America, Goldman Sachs, and Morgan Stanley make 15-30% swings on non-earnings and little information, you can guess it’s a result of a lot of random speculation. This doesn’t mean it is necessarily dangerous. It just means, we have to be extra cautious. Take quick profits or if you are a long term trader, this may be a great time to buy.

In any case, I have added to my BAC position last Friday. I probably entered it a bit early, which is fine. I’ve missed big moves playing it “too safe”.

Read Full Post »

A Picture is Worth a Thousand Words

Have you heard of the expression: A Picture is Worth a Thousand Words?

Well, Two Pictures are Worth Two Thousand Heavily Loaded Words…

WAShington Mutual, as many of you probably know, has been bought out by JP Morgan Chase. The mortgage crisis has taken yet another big, once well established bank. I find irony in this picture. It’s incredible to see big banks and big investment banks fail. It just goes to show, nobody is safe in this subprime mess. The government has decided to pump money into the remaining financial banks/ibanks. What good would this do? Let’s bail them out, so they can continue to spend money where they shouldn’t and act like nothing happened.

Though I don’t believe our economy will get as bad as Zimbabwe’s, I sure hope it doesn’t, this is a receipt from a purchase in Zimbabwe. It looks like a huge transaction, but the person was only buying dinner and water. That set the person back a billion $Z. Inflation in that country is off the charts.

Read Full Post »

A Picture is Worth a Thousand Words

Have you heard of the expression: A Picture is Worth a Thousand Words?

Well, Two Pictures are Worth Two Thousand Heavily Loaded Words…

WAShington Mutual, as many of you probably know, has been bought out by JP Morgan Chase. The mortgage crisis has taken yet another big, once well established bank. I find irony in this picture. It’s incredible to see big banks and big investment banks fail. It just goes to show, nobody is safe in this subprime mess. The government has decided to pump money into the remaining financial banks/ibanks. What good would this do? Let’s bail them out, so they can continue to spend money where they shouldn’t and act like nothing happened.

Though I don’t believe our economy will get as bad as Zimbabwe’s, I sure hope it doesn’t, this is a receipt from a purchase in Zimbabwe. It looks like a huge transaction, but the person was only buying dinner and water. That set the person back a billion $Z. Inflation in that country is off the charts.

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Live Your Life

So live your life (ay), ay ay ay
You steady chasing that paper

Hedge Fund Manager: Goodbye … And Think Pot

Something to think about…

In other news, this market remains a day trader’s market. Take your gains quick and cut your losses.

Read Full Post »

Live Your Life

So live your life (ay), ay ay ay
You steady chasing that paper

Hedge Fund Manager: Goodbye … And Think Pot

Something to think about…

In other news, this market remains a day trader’s market. Take your gains quick and cut your losses.

Read Full Post »

$250 Billion of the $700 Billion to be Injected into Banks

Here is your reason for why the market is up today.

J.P. Morgan Chase & Co., Bank of America Corp./ Merrill Lynch, Citigroup Inc., Wells Fargo & Co., Bank of New York Mellon Corp., State Street Corp., Morgan Stanley and Goldman Sachs Group Inc. will each receive a portion of the $250 billion dollars allocated to them.

Temporary solution to an even larger problem.

If the government is going to inject taxpayer money (essentially our money) into these banks, we mind as well become shareholders of these banks.

BAC is up 13%
MS is up 21%
GS is up 10%

And on fears of earnings reports (to be released tomorrow) JPM is down 4%

Read Full Post »

$250 Billion of the $700 Billion to be Injected into Banks

Here is your reason for why the market is up today.

J.P. Morgan Chase & Co., Bank of America Corp./ Merrill Lynch, Citigroup Inc., Wells Fargo & Co., Bank of New York Mellon Corp., State Street Corp., Morgan Stanley and Goldman Sachs Group Inc. will each receive a portion of the $250 billion dollars allocated to them.

Temporary solution to an even larger problem.

If the government is going to inject taxpayer money (essentially our money) into these banks, we mind as well become shareholders of these banks.

BAC is up 13%
MS is up 21%
GS is up 10%

And on fears of earnings reports (to be released tomorrow) JPM is down 4%

Read Full Post »