Jan 26, 2010

Daily Markets - Financial News & Opinions

Daily Markets - Financial News & Opinions


4 Things To Consider When Investing In Commodites

Posted: 26 Jan 2010 05:45 AM PST

Commodity exchange traded funds (ETFs) have seen unwavering popularity in recent years. If you’re one of the growing number of investors looking to get in on the action, it’s worth reviewing the ins and outs of commodity ETF investing so you don’t get burned.

Advisors are increasingly recommending that investors include some commodities exposure as a way to diversify your portfolio, even with their high volatility, comments Ben Baden for U.S. News & World Report.

Five years ago, they … [visit site to read more]


Stock Picks For 26 January

Posted: 26 Jan 2010 05:11 AM PST

( click to enlarge )

(RMBS) consolidated on Monday, after its big move on Friday. The way the stock consolidated on Monday, is bullish, as it traded in a tight range. I’m watching the stock again today, as resistance stays at $26. There is a chance the stock will consolidate again this week, but watch it closely in case it makes an early move. MACD has generated a buy signal and is currently above the 0 line. I think the stock will be heading higher. Technically Bullish.

( click to … [visit site to read more]


Thoughts On D.C., China And Investing

Posted: 26 Jan 2010 05:01 AM PST

Sometimes it is useful to get away from routine. Since I am at a stage in life where I can kiss any routine goodbye, I know it is easier for me than others. Still, I do recall relishing outlets during my years of steady work endeavors, perhaps more so than today.

I returned from a useful and exhilarating trip to Washington, D.C. Five days of observation, touring, culture and culinary excess overcame the cold weather and sometimes biting rain.

Perhaps my most interesting conversation … [visit site to read more]


Forex Trading: GBPUSD Consolidating At The Lows As NY Enters The Fray

Posted: 26 Jan 2010 04:44 AM PST

The GBPUSD fell sharply overnight - pushed lower after failing to break through the 200 hour MA at the 1.6266 and then on the fall through the 100 hour moving average as GDP came out much weaker than expectations.  The fall has taken the price to a low so far of 1.6111.  The low from yesterday came in at 1.6088 and the low from Friday came in at 1.6076.  These levels should find some profit taking buyers, however, from a longer term perspective the picture is not that … [visit site to read more]


UK GDP For Q4 2009 At 0.1% - Truly Awful

Posted: 26 Jan 2010 04:01 AM PST

Wow, that is a poor number. So much for Labour going to call an election on the back of the ‘return’ to growth.

And crocodile tears for the BBC having prepared for weeks on the Government’s behalf a ‘we are out of recesion day special.’

Worse to is to remember the comparison; with oct to Dec 2008  - the total financial meltdown and crisis. So we have as the UK only achieved a 0.1% better result than that. truly awful.

Even worse the cold spell of january will have knocked … [visit site to read more]


Pimco’s El-Erian: Bank Curbs Likely To Spread To Other Countries

Posted: 26 Jan 2010 03:01 AM PST

Washington’s efforts to clamp down on big banks are likely the first in a line of global moves to curb risk-taking in the financial sector, Pimco’s Mohamed El-Erian said.
Speaking the day after President Obama proposed sweeping changes in the way the nation’s largest financial institutions operate, El-Erian told CNBC that taking on the banks is the easiest way for policymakers to show they are addressing the problems with the global financial crisis.
“We as investors have to be able to … [visit site to read more]


Forex Trading Review For 26/01/2010

Posted: 26 Jan 2010 02:19 AM PST

USD Dollar (USD)

The Dollar is consolidating moderate losses across the board on prospects the Federal Reserve will keep its target lending rate near zero to spur growth, pulling back after rising sharply last week. Existing Home Sales came out 5.45M worse than 5.95M expected. Wall Street finished with small gains after falling considerably last week. Dow Jones rose 0.23% and NASDAQ gained 0.25%. Commodities rose higher. Crude oil is back above $75 a barrel. Gold (XAU) trades near $1,100 an … [visit site to read more]


German IFO Index Preview

Posted: 26 Jan 2010 02:07 AM PST

In December, the IFO index rose for the ninth consecutive month to 94.7, from 93.9 in November. We expect the IFO’s upward trend to continue into January, albeit at a slower pace: our estimate is for an increase to 95.1 - the highest since July '08. The current situation index should rise from 90.5 to 91.4, while the expectations index should remain unchanged at 99.1, as economic recovery is likely to weaken in the months ahead. Should our estimate prove correct, the IFO should remain … [visit site to read more]


ETF Providers: Who’s Who?

Posted: 26 Jan 2010 02:01 AM PST

As the exchange traded fund (ETF) industry surges in assets ($705 billion at the end of 2009) and number of funds offered (772), it’s also surging in the number of providers selling those funds. Who’s who?

But first, let’s tackle the question: why should you know your providers? No two ETF providers are created equally. Differences can range from:

Index construction methodology
Expense ratios
Types of funds offered
The provider’s expertise in a particular area

Investors can use … [visit site to read more]


Video: AOL Acquires StudioNow For $36.5 Mln

Posted: 26 Jan 2010 01:00 AM PST

AOL acquired online video company StudioNow, in a $36.5 million deal. StudioNow will become part of AOL’s seed.com. … [visit site to read more]


A Simple Style Rotation Model

Posted: 26 Jan 2010 12:44 AM PST

Recently one of the more frequent commentators on this site quoted George Soros at The Big Picture blog (thanks Keith):

Economic history is a never-ending series of episodes based on falsehoods and lies, not truths. It represents the path to big money. The object is to recognize the trend whose premise is false, ride that trend, and step off before it is discredited.

In other words, the path to profit is to spot a trend early, jump on it and then jump off before it totally blows up. This … [visit site to read more]


Too Interconnected To Fail = Too Big To Fail: What Is In A Leverage Ratio?

Posted: 26 Jan 2010 12:01 AM PST

Did allowing financial institutions to become “too big” play a role in the financial crisis? This column argues that being “too interconnected” is also a factor, and that US accounting standards should recognise gross derivatives exposure on the balance sheet to make this interconnectedness, and the resulting exposure, clear.

By now there is general agreement that a financial institution can not only be “too big”, but also “too interconnected” to fail. But how do we measure what it is to … [visit site to read more]


Forex Trading: Gbp/Jpy Does An About Face As S&P Japanese Outlook Turns “negative”

Posted: 25 Jan 2010 11:27 PM PST

Gbp/Jpy traded up to 146.72, just off its 100 hour M/A, on the S&P's negative outlook of Japan. The pair had looked poised for a further move down earlier in session, however unforeseen news can change a currencies momentum rather … [visit site to read more]


The US Federal Reserve Has Failed Miserably

Posted: 25 Jan 2010 11:01 PM PST

How are we to judge the Federal Reserve? The Fed by its very nature has been an opaque institution. What truly goes on behind the closed doors of the Fed? What are the relationships amongst the Fed Chair and Fed governors? How about the relationships between Fed representatives and political operatives?

While volumes have been written about the history of the Fed, to the American public the Federal Reserve remains a mystery. How can we lift the veil on this mysterious institution? Let’s … [visit site to read more]


Forex Trading: Gbp/Jpy Retracing Move Up From 144.58, Feels Effects Of BoJ

Posted: 25 Jan 2010 10:32 PM PST

Since making a new high of 147.28 earlier in this session Gbp/Jpy has been on a steady decline due in part to commentary from the Bank of Japan. The BoJ said it remains committed to fighting deflation as gains in the yen risk stunting the country's economic recovery.  That being said "it's highly probable the central bank will come under pressure to ease policy further as the economy loses steam," said Teizo Taya, a former central bank board member.
 The pair may be … [visit site to read more]


Mutual Funds: Top Income Equity Funds

Posted: 25 Jan 2010 10:26 PM PST

Today we are featuring top-performing "Income” equity mutual funds, which primarily invest in equity securities of companies that produce income for shareholders. They are considered less risky as they tend to invest in companies that are both established and creditworthy.
Investors can find such income funds by checking out the entire list of the Zacks #1 Rank Income Equity Funds.
5 Great Income Opportunities
Oppenheimer Capital Income A (OPPEX) was incepted in December 1970. This income … [visit site to read more]


How To Play Apple And Other Tech Earnings With ETFs

Posted: 25 Jan 2010 09:45 PM PST

It’s official: We love our iPhones and MacBooks. That love helped propel Apple (AAPL) to its most profitable quarter ever last year as big sales led to an almost 50% jump in net income. As other tech giants line up to announce earnings, watch those related exchange traded funds (ETFs).Thanks to strong sales of iPhones and Macintosh computers, Apple was able to surge to its best quarter ever. And things are only about to get brighter for the personal computer and smartphone maker: in just two … [visit site to read more]


Stock Buy: GeoReseources, Inc.

Posted: 25 Jan 2010 09:00 PM PST

GeoReseources, Inc. (GEOI) recently hit a new 52-week high on rising estimates and the company’s strong Q3 results from early November.
Company Description
GeoResources, Inc. operates as an independent oil and gas company involved in the production and exploration of crude and natural gas in Texas, Louisiana, Oklahoma, Montana and North Dakota. The company was founded in 2004 and has a market cap of $216 million.
Third-Quarter Results
With energy prices remaining in elevated territory, … [visit site to read more]


Bull Of The Day: Cree, Inc. (CREE)

Posted: 25 Jan 2010 09:00 PM PST

Cree, Inc. (CREE) is one of the leading producers of SiC and GaN-based LEDs. September quarter revenue and earnings exceeded consensus estimates.
The global movement to energy efficient lighting is prompting lighting companies and consumers to look at other options. Therefore, lighting will be the strongest end market for Cree, likely followed by video displays and notebooks. Yield improvements, higher capacity utilization, larger wafers and offshore production will increasingly offset new … [visit site to read more]


Stock Buy: Companhia Brasileira De Distribuicao

Posted: 25 Jan 2010 09:00 PM PST

Companhia Brasileira de Distribuicao (CBD) recently posted excellent sales results after an acquisition and 11% comparable stores growth.
Company Description
Companhia Brasileira de Distribuicao, also referred to as Grupo Pao de Acucar, is a Brazilian retailer. The company operates over 600 grocery and appliance stores.
Surging Sales
On Jan 14 Grupo Pão de Açúcar reported a 45% jump in sales, to $4.2 billion, for the fourth quarter of 2009. The company acquired Ponto Frio, a home appliance … [visit site to read more]


Stock Buy: OM Group, Inc.

Posted: 25 Jan 2010 09:00 PM PST

OM Group, Inc. (OMG) has seen demand return in some of its key chemical markets, especially in technology. The company has surprised on estimates 2 out of the last 4 quarters. OM Group trades with a forward P/E of 14.4.
Company Description
OM Group manufactures specialty chemicals and advanced materials for industrial processes. The company has more than 4,000 customers worldwide in over 50 industries. OM Group specializes in cobalt-based specialty chemicals and is a leading supplier of … [visit site to read more]


Stock Buy: Companhia Brasileira De Distribuicao

Posted: 25 Jan 2010 09:00 PM PST

Companhia Brasileira de Distribuicao (CBD) recently posted excellent sales results after an acquisition and 11% comparable stores growth.
Company Description
Companhia Brasileira de Distribuicao, also referred to as Grupo Pao de Acucar, is a Brazilian retailer. The company operates over 600 grocery and appliance stores.
Surging Sales
On Jan 14 Grupo Pão de Açúcar reported a 45% jump in sales, to $4.2 billion, for the fourth quarter of 2009. The company acquired Ponto Frio, a home appliance … [visit site to read more]


Bear Of The Day: AES Corporation (AES)

Posted: 25 Jan 2010 09:00 PM PST

Our Underperform recommendation on AES Corporation (AES) takes into account the significant international presence of its fossil fuel power plants in several emerging markets, thereby exposing it to both foreign currency and political risk.
The company’s predominantly long-term contracts preempt any rate-base growth in the near term for its regulated utilities. Also, with lower electricity demand due to a tepid global economy, the fate of spot wholesale markets is not encouraging.
As a … [visit site to read more]


The Rude Awakening Of 2010

Posted: 25 Jan 2010 08:45 PM PST

The heyday of the Bush-Obama bailout frenzy is coming to an end.

The bailout’s base of public support, tenuous from the outset, is collapsing.

Its chief architects - Treasury Secretary Geithner and Fed Chairman Bernanke - are politically dead or dying; its loyal opposition - Obama adviser Paul Volcker and FDIC Chairman Bair - is gaining rapidly in influence.

Suddenly and with growing momentum, America is shifting into a brand new phase of the crisis …

The Rude Awakening of … [visit site to read more]


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