- Stocks Lurking Near New Highs Again
- Risk Trade Is Back On
- This Week's Biggest Story: The Dollar
- Corporate Issuance Continues at Torrid Pace
- The Bernanke Dollar Bounce & Gross Says Forget About Rate Hike
- Colgate Really Sparkles After Hours
- Light Volume Has Traders Complaining
- Gold Shatters Another Record
- Have Retailers Reached Their Limits?
- The Retail Mind Game
TRADER TALK RSS FEED
MOST SHARED
- Kuoni CEO Sees Recovery in Travel Sector
- Dubai Struggles to Ease Debt Fears; Investors Rattled
- Gold Retreats from Record High as Dollar Rebounds
- China Unveils Carbon Target Ahead of Copenhagen
- Attraction of Switzerland to Businesses
- US Markets Bracing for Selloff On Worries About Dubai's Debt
- Hyundai-Kia Targets Rapid China Growth in 2010
- Fannie Mae to Tighten Lending Standards: Report
- Euro Shares Record Biggest Drop in 7 Months
- UK's Darling to Downgrade 2009 Growth Forecast
- 4 Thanksgiving Week Buys For Your Portfolio: Market Pros
- There's a 'Great Chance' For a Double-Dip Recession: Strategist
- Revenge of the Gangsta Nerds
- Will TCU See The "Flutie Effect?"
- Retail Earnings and Sales to Improve in Q4: Analyst
- Consumers Catching the Holiday Spirit
- It's Beginning To Look A Lot More Riskless
- Crescenzi: Claims Level Suggests End to Job Losses
- Hedge Funds Take Early Lead in Warren Buffett's 'Big Bet'
- US Markets Bracing for Selloff on Dubai Debt Worries
- US Dollar Falls to 14-Year Low Against the Yen
- No Thanksgiving Rest for Retailers in Sales Race
- UK's Darling to Downgrade 2009 Growth Forecast
- US Companies Already Moving on Curbing Emissions
- Fannie Mae to Tighten Lending Standards: Report
- Investing in Good Karma – and Making a Profit
- Retailers Should Believe in Christmas Miracles
- Bankruptcies Jump, Hitting Highest Level in Four Years
More Videos
Trader Talk
Text Size 
There was a time when quadruple witching expiration (the quarterly expiration of stock and index futures and options) was a big event; the Wednesday and Thursday before would often see very large volume and volatility. That doesn't happen anymore, for a combination of reasons, principally because traders spread their rollover trades over a week and a half now.
Elsewhere:
1) Merrill Lynch [MER
Loading...
()
]is down 5 percent on a vague, unsourced rumor from Reuters that Merrill might issue a profit warning. Remember the internal logic of active stock traders: it doesn't matter whether a rumor is true or not, what matters is to be ON THE RIGHT SIDE OF THE TRADE. Ask yourself this question: who would have access to this kind of inside information, that it would be leaked to a trading desk? Which is more likely: that a trader creates a rumor that they can profit from, or that inside information has been leaked? Then consider that short sellers have been pressing--and continue to press--financials. I'm not saying that it is impossible Merrill will issue a profit warning; I'm just asking you to consider the source (trading desks) and their motivations.
2) Maybe it's not so bad with regional banks:
--Huntington Bancshares[HBAN
Loading...
()
] up nicely as after the close they announced that charge-offs would come in at the top end of its 2008 guidance; so maybe the losses won't be as great as anticipated. This follows BB&T, which announced yesterday it was considering raising its dividend.
--Not so fast. Ed Najarian and company at Merrill Lynch out with a long (56 page) note, cutting estimates for regional banks on higher loan losses and reserve building. It's not all bad news: bank stocks now appear to be in capitulation mode," the report says.
3) Continental Airlines [CAL
Loading...
()
] is doing a secondary offering of 11 million shares of common stock at $14.80 per share. The stock went out yesterday at $15.59; trading down nearly a dollar.
4) We have been talking about how the value of many used cars--particularly gas guzzlers--has been dropping rapidly, putting pressure on car dealers and consumers alike. A similar situation may be happening with leased vehicles.
Lehman Brothers out with a note saying that GM's[GM
Loading...
()
] financial arm may need to write down $1.5 billion, and Ford's[F
Loading...
()
] may need to write down $1.1 billion.
The report noted: "We expect deteriorating residual values of lease vehicles to be lower than original expectations, which could significantly impact loss rates that are already tracking above average for recent vintages."
5) You think it's tough in your business? Try being Winnebago, beset with high gas prices,
Winnebago beat on the earnings side, but revenues were short of expectations.
Listen to these stats from Winnebago:
--the motor home market has faced double digit retail sales declines for eight of the last nine months;
--retail sales declined 26.1 percent for the first four months of 2008;
--forecasts indicate volumes will decline to levels not seen since 1991.
Questions? Comments?
POPULAR TRADER TALK POSTS
- Stocks Lurking Near New Highs Again
- Risk Trade Is Back On
- This Week's Biggest Story: The Dollar
- Corporate Issuance Continues at Torrid Pace
- The Bernanke Dollar Bounce & Gross Says Forget About Rate Hike
- Colgate Really Sparkles After Hours
- Light Volume Has Traders Complaining
- Gold Shatters Another Record
- Have Retailers Reached Their Limits?
- The Retail Mind Game
Data is a real-time snapshot *Data is delayed at least 15 minutes