From the monthly archives:
What is the fair value of the market? It is illegal to short right now … so no one really knows. The equity market continued to exhibit the kind of moves expected with a CBOE Market Volatility Index (VIX) at 40, by snapping back 5% higher today.
Shorts in the S&P 500 December [...]
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CHICAGO – September 30, 2008 – Friday, Anthony Quartullo, margins specialist at online brokerage OptionsHouse, LLC (“OptionsHouse”), was a guest commentator on GlobalTec Solutions, LLP, WizeTrade TV.
Quartullo fielded questions on the “Speak Greek” program concerning margin requirements, day-trading rules, and the newly installed short-selling regulations. Jared Levy, “Speak Greek” host, said, “I am sure our [...]
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While underlying commodities have sold off, a lot of commodities-based stocks have gotten killed. Implied Volatility is deservingly high right now, and price-to-earnings numbers are very low.
However, for investors who think these stocks are oversold, the opportunity may be ripe to buy stock and sell calls. Many of these stocks were [...]
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Playing Politics?
Many pundits these days have been focused solely on Wall Street, which can take Main Street’s concerns for granted. Only seven of the “Yay” votes on the bailout package came from legislators in what are called battleground states (with tight races) for the upcoming November election.
The political dangers [...]
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Congratulations, I’m Sorry.
Today was an historic sell off. Move over Black Monday (10/19/87); today’s 777.68 decline in the Dow Jones Industrial Average (DJIA) is the largest one-day point decline ever! On a percentage basis, today’s loss doesn’t make the top ten, but this fact does not provide much solace to investors.
The Congressional [...]
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Bloodbath Bullets —
Bailout bill’s failure has caused carnage in the Markets
The House of Representatives voting against this bill “because it is Wall Street’s problem” is like a giant meteor hitting the earth in the Atlantic ocean and legislators in Alabama cheering, ”it missed us!” They have two hours to live before the tsunami [...]
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The Paulson bailout – formerly known as the TARP (Troubled Asset Relief Program) was re-christened the EESA (Emergency Economic Stabilization Act) (aka Everyone’s Emptied Savings Accounts) and finally looks to be moving toward approval. As with most legislation put through Congress, this plan has something everyone can hate.
The passage of the EESA means [...]
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Bad News, Bad News
The market appears likely to test traders’ nerves again this morning as a tsunami of negative news has greeted us today.
Washington Mutual (WM) has become the largest bank failure in U.S. history. JP Morgan (JPM) has bought the deposits, assets, and some of the liabilities of WM banking [...]
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Possible “Relief” in Sight?
So now it appears that the TRAP – I mean the TARP – will be approved.
Most economic data today was weaker than expected, but traders already knew the economy is weak.
General Electric (GE) has rebounded from early weakness off their lowered outlook and halt to their stock buyback [...]
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Freddie Mac (FRE) and Fannie Mae (FNM) have rallied tremendously from their recent lows. They seem to be temporarily benefiting from the short-sale ban, as only long holders of the stock can sell it.
Furthermore, as referenced in The Wall Street Journal this morning, investors who hold long puts in the two names are paying [...]
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