It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Thank you.
Some features of ATS will be disabled while you continue to use an ad-blocker.
By Adam Ewing July 27 (Bloomberg) --The Standard & Poor’s 500 Index has broken into new territory and may rally about 9 percent this year from current levels, according to technical analysts at Bank of America Corp. The S&P 500 has closed above its January 2009 high near 944 and has also stayed above the May 2008 downtrend line of 900, both key signals that the index has potential to reach 1,055 to 1,065 this year, Bank of America’s Mary Ann Bartels and Stephen Suttmeier wrote in a report today.
Fed official: rates to be kept low past upturn
www.reuters.com...
JACKSON HOLE, Wyoming (Reuters) - Financial markets have not fully understood that the U.S. Federal Reserve's pledge to keep interest rates exceptionally low for an extended period means they will stay low beyond when officials normally would raise them, a top Fed official said on Friday.
"I don't think markets have really digested what that means," St Louis Fed President James Bullard said in an interview.
The Fed's strategy is aimed at promoting a future rise in inflation, which should provide an immediate boost in activity in anticipation of a future boom, but that hasn't happened, Bullard said.
The St. Louis Fed official's comments suggest the Fed will be in no hurry to raise rates when signs of an economic rebound take firmer hold and that the central bank will be willing to tolerate higher levels of inflation over the short term as it nurses the ailing economy back to health.
Did anyone get kick out of that sucker's rally?
Dollar retreats as U.S. home sales raise faster than forecast
www.marketwatch.com...
NEW YORK (MarketWatch) -- The U.S. dollar declined against the euro and other major rivals on Friday after a report said existing-home sales rose more than expected last month, boosting equities to the detriment of the U.S. currency.
DXY
78.09
Change
-0.34 -0.43%
Previous close
78.43
Day low
77.75
Day high
78.58
52 week low
75.89
52 week high
89.49
Crude futures eclipse $74 a barrel, the highest level this year
www.marketwatch.com...
NEW YORK (MarketWatch) - Crude-oil futures rose above $74 a barrel Friday to their highest level in 2009 buoyed by weakness in the dollar and by positive U.S. and European economic data.
In contrast, natural-gas futures fell sharply to end at a fresh seven-year low, pressured by a glut in supplies.
Crude oil for October delivery rose 98 cents to end at $73.89 a barrel on the New York Mercantile Exchange. The October contract surged 6.1% this week.
Earlier Friday, October crude futures rose to an intraday high of $74.72 a barrel in electronic trading on Globex. That's the highest level for a front-month contract since late 2008, according to FactSet Research data.
"Crude oil is trading to the upside today due to the strength we are seeing in the equity markets and weakness in the dollar," said Tariq Zahir, managing member at Tyche Capital Advisors LLC.
FDIC Board Meetings
www.fdic.gov...
www.vodium.com...
Location
Board Room on the sixth floor of the FDIC Building located at 550 - 17th Street, N.W., Washington, D.C.
Date
August 26, 2009
Description
Pursuant to the provisions of the “Government in the Sunshine Act” (5 U.S.C. 552b), notice is hereby given that the Federal Deposit Insurance Corporation’s Board of Directors will meet in open session at 3:30 p.m. on Wednesday, August 26, 2009, to
consider the following matters:
Summary Agenda: No substantive discussion of the following items is anticipated. These matters will be resolved with a single vote unless a member of the Board of Directors requests that an item be moved to the discussion agenda.
Disposition of minutes of previous Board of Directors’ Meetings.
Discussion Agenda:
Memorandum and resolution re: Final Statement of Policy of Qualifications for Failed Bank Acquisitions.
Memorandum and resolution re: Final Rule on the Extension of the Transaction Account Guarantee Program.
Memorandum and resolution re: Notice of Proposed Rulemaking Regarding Risk-Based Capital Guidelines; Impact of
Modifications to Generally Accepted Accounting Principles; Consolidation of Asset-Backed Commercial Paper Programs;
and Other Related Issues.
Near-zero interest rates and the Fed's aggressive efforts to pump of money into financial markets have raised concerns about sparking inflation.
The Fed has steadily sought to calm those fears by arguing it can keep inflation at bay by paying interest on the reserves banks hold at the Fed. By making it attractive for banks to keep their reserves out of play, the Fed would prevent that money from circulating and causing the economy to overheat.
The strategy of raising the interest rate the Fed pays to banks to pull money back from the system as the economy picks up may have pitfalls, Walsh wrote.
"The perception that borrowing costs for households and firms are going up while the Federal Reserve is rewarding banks with higher interest on reserves may be less politically supportable," he said.
Originally posted by Vitchilo
I mean, the bank bailout is already over 20 trillion and nobody is doing anything about it.
Originally posted by stander
Did anyone get kick out of that sucker's rally?
High volume was absent, so was Mr. Goldman. He'll be back on Monday, though, to keep the bubble bull in the right direction.
[atsimg]http://files.abovetopsecret.com/images/member/a4d29ec2f3c0.jpg[/atsimg]
Originally posted by bryanku
reply to post by stander
Not quite sure what relation bailout $$$ has on market capitalization. Market capitalization is simply share price X number of shares and has nothing to do with the amount of assets a company holds including funds received by the federal government.
Originally posted by bryanku
reply to post by GreenBicMan
I would have to completely disagree with you, politely. Options expiration was Friday and a big part of last weeks run that was based on low volume, as has this entire rally(bigggggg warning sign), and pushed trailing PE ratios to ABSURD levels. As many know, the expectation is that 3rd and 4th quarter earnings will be much lower as loan defaults at the corporate and individual consumer level continue into the stratosphere. In addition September is historically one of the worst months for domestic markets. Momentum may take the markets higher yet in the very short term, but fundamentals always win in the end and the higher this sucker goes the harder it falls on the way down.
Disclaimer: I am short the S&P 500 through ETF.....and down 8%
Originally posted by GreenBicMan
I feel we are ready for a run again man
•We no longer need stimulus to keep the economy from tanking.
•Interest rates are allowed to rise above 0%.
•Massive government intervention in the economy is no longer needed.
Originally posted by stander
Originally posted by GreenBicMan
I feel we are ready for a run again man
There are possibilities in this department. If you couple the sale of existing homes from Friday with the sale of new homes figures that are due on Wednesday, then Wednesday and the last Friday would be twins. But Monday should be a "correction day." Lalala.
These rallies are the "hope" rallies. If the recession is over, you will never see 9k again. Buy&holders can't lose a dime in that case and there are plenty of them out there . . .
There are some folks who want to see the right evidence that the economy can do without a nurse:
•We no longer need stimulus to keep the economy from tanking.
•Interest rates are allowed to rise above 0%.
•Massive government intervention in the economy is no longer needed.
It's all matter of interpretatation and who does the interpreting.
Originally posted by bryanku
reply to post by GreenBicMan
I would have to completely disagree with you, politely. Options expiration was Friday and a big part of last weeks run that was based on low volume, as has this entire rally(bigggggg warning sign), and pushed trailing PE ratios to ABSURD levels. As many know, the expectation is that 3rd and 4th quarter earnings will be much lower as loan defaults at the corporate and individual consumer level continue into the stratosphere. In addition September is historically one of the worst months for domestic markets. Momentum may take the markets higher yet in the very short term, but fundamentals always win in the end and the higher this sucker goes the harder it falls on the way down.
Disclaimer: I am short the S&P 500 through ETF.....and down 8%