Do not despair

Anyone despairing?  Okay, don’t.  Here’s some marginally good news for those with long positions not sufficiently hedged recently.  Courtesy of Minyanville, question by Prof. Sedacca, and answered by Prof. Jason Goepfert.  – Ilene
Minyan Mailbag: The Ruins of June
Prof. Goepfert,
What has happened historically after months this lousy, particularly during secular bears?
Thank you,
Prof. Sedacca [...]

Trading Idea: VLO

Here’s a trading idea, courtesy of Daniel Jones of Option Notions, along with a summary of his recent trades. Today’s pick is a call spread on VLO.
UPDATE:  GM LONG, SPREAD
Last week we mentioned that the market was almost past the technical "Panic point" that we saw at the 11,800 Dow Industrials point.  The "left field" loop [...]

Early Morning Tidbits

Courtesy of Notable Calls,
Early Morning Tidbits:

 
- Citigroup adds Google (NASDAQ:GOOG) to Top Picks Live list based on what presents itself as a highly favorable Risk-Reward outlook. Based on extensive channel checks, they believe that GOOG’s Q2 results are well on track to meet their estimates ($3.82B revenue/$4.73 EPS), despite recessionary headwinds.
- JP Morgan reits Overweight [...]

Blue Chip Losses

Here’s some more interesting information from Bespoke Investment Group:
Investors Losing All Their Blue Chips

Excerpt:  "So called blue-chip stocks have struggled mightily over the last year.  The total loss in market cap from their 52-week highs for stocks in the S&P 100 (largest 100 S&P stocks by market cap) is now $2.5 trillion.  Below we highlight [...]

It’s All About Oil

Check out the chart that’s part of this brief note, courtesy of Bespoke Investment Group’s
It’s All About Oil
If any one tries to tell you differently, all you need to do is show them the chart below.  As last week’s trading illustrates, every time oil went up, stocks went down, and every time oil pulled back, the [...]

Ready to Rally?

Most of what I read is negative, with lots of reasons for doom and gloom, but here’s an article by Sean Udall at Minyanville discussing stocks he’s watching, thinking we may be setting up for a rally next month.  – Ilene
Ready to Rally?
Courtesy of Minyanville’s Sean Udall.
Here are my targets for accumulation, my potential shorts [...]

Shiller’s Keynesian Claptrap

Here’s another very well-written article by Mish this weekend, I fully agree with him, in case you can’t tell.  – Ilene
“We can’t solve problems by using the same kind of thinking we used when we created them,”  Albert Einstein.
Shiller’s Keynesian Claptrap

The proposed solutions to the current economic crisis are getting more and more absurd. With that in mind, [...]

Greenspan, Please

Graham Summers’ thoughts on Greenspan’s eventual retirement, i.e., it couldn’t be too soon. 
Greenspan, Please, Retire Already!
Originally I was going to write an essay on two international mutual funds for you today. However, in light of the recent comments by Alan Greenspan, that essay has been relegated to tomorrow. Enough is enough.
Since retiring from his post as [...]

Solar Power Technologies

Promising Solar Power Technologies
Courtesy of Mish.
New cost effective solar energy products are on the near horizon. Let’s take a look at some of the promising ones.
MIT reports prototype solar dish passes first tests.
A team led by MIT students this week successfully tested a prototype of what may be the most cost-efficient solar power system [...]

Fire Sales of Bank Assets

Mish on Banks (including Citigroup) and the potential up-coming sale of their assets, very concerning – how does anyone know when all the bad news is finally priced in?   
Fire Sales Of Bank Assets Coming Up
CNNMoney is reporting Credit Card Issuers Face Bigger Losses Than Expected.

"The deterioration in credit cards is accelerating faster than many had expected," said [...]

Bankers Clash, Markets Crash

Here’s a comprehensive summary, by Gary Dorsch, of the interplay between the central banks of different countries and the resulting effects on the world economy, commodity prices and inflation. 
When Central Bankers Clash, Stock Markets can Crash

Courtesy of Gary Dorsch; Gary writes Global Money Trends, a respected investment newsletter covering global asset markets.

Hyper-inflation in the commodities markets is [...]

Solar Energy Projects

Excerpts from a NY Times article discussing a federal gov’t moratorium on new solar energy projects so we may assess the environmental impact for about two years. 
Citing Need for Assessments, U.S. Freezes Solar Energy Projects

Steve Marcus/Las Vegas Sun, via Reuters

By DAN FROSCH

"DENVER — Faced with a surge in the number of proposed solar power plants, the federal [...]

Turf Wars

Excellent article by Mish on the tensions between gov’t entities and quasi-gov’t entities in attempting to address the mess they’ve created in the economy.  One point I might add to Mish’s commentary is that I don’t think "regulation" per se is the problem.  I’d qualify that term, since regulation can be necessary and justified, or misguided, self-interested and harmful.  No [...]

Stuck in the Middle

Ironic article by Tim Price, at The price of everything. - Ilene
Stuck in the Middle
“Well I don’t know why I came here tonight
I got a feeling that something ain’t right
I’m so scared in case I fall off my chair
And I’m wondering how I’ll get down those stairs
Clowns to the left of me, jokers to the right
Here I [...]

Risky Waters, Opportune Waves

Seeing opportunities in the risky waters, The Capital Spectator, Courtesy of James Picerno.
RISKY WATERS AND OPPORTUNE WAVES
Yesterday’s hefty selling in the stock market may have shocked the perma bulls, but it should come as no surprise to strategic-minded investors. The writing has been on the wall for some time now, economically and financially speaking, as [...]