With the financial reform bill now in conference, analyst notes and trader talk have heated up considerably over the weekend. We are now in endgame, and there is considerable speculation on the outcome of the key points.
The new SEC rules on the single stock circuit breakers were published today in the Federal Register. This now begins a 10-day public commentary period, which are due on or before June 3, 2010. Elsewhere, this has all the characteristics of a quiet summer day; but given the recent volatility, that is being greeted with relief rather than yawns.
"Texas Rangers file for bankruptcy after sale fell through" is a hot topic on trading desks the past half hour, even though they have been expected to file, and even though it appears to be a prepackaged bankruptcy. Maybe it's because Yankees Alex Rodriguez is the top unsecured creditor...
How big is the inventory of homes for sale? Fairly high, judging by April Existing Home Sales. We don't really know how big the shadow inventory levels really are, i.e., we don't know how to predict how many people will decide to put their homes up for sale on any given month. The headline Existing Home Sales figure was excellent, but...
This morning (Monday), Lowry, the US' oldest technical analysis service, echoed this theme, telling clients that "the temptation may be strong to conclude that perhaps, just this once, things are, in fact, different and the market has fallen into a new bear trend without the historical forewarnings of a major top."
Despite fresh rounds of saber-rattling in Washington recently, everyone seems to be sticking to their long-practiced scripts at the U.S.-China Strategic and Economic Dialogue meetings in Beijing.
About one-third of employers subject to major requirements of the new health care law may face tax penalties because they offer health insurance that could be considered unaffordable to some employees, the New York Times reports.
Euro weaker again as the Bank of Spain is taking over CajaSur, a thrift that has high levels of property loan defaults. While Europe is weaker, it has come off their lows, as have U.S. stock futures. Oil higher, copper higher, gold higher. Elsewhere: Still trying to figure out where the financial regulatory bill will come down...
Anxious and angry, Americans are not in a congratulatory mood. That's bad news for President Barack Obama and his Democratic allies.
In the investment strategist world, I tend to be pretty cautious. I do believe that while economies are recovering, it's going to be a long difficult climb from years of excesses.
What’s ahead? Traders expecting choppier markets for the rest of the year. Remember what happened: going into May, traders were not only long the market, they were short volatility... Now the volatility bets are off. They were forced to buy volatility for the past couple weeks, culminating in a buying frenzy this week.
Europe closes near its highs, most country indices on either side of up or down 1 percent. After a miserable week, stocks, bonds, the euro and commodities ALL up. Stocks at highs for the day. It's not hard to understand why...
The Senate on Thursday approved a far-reaching financial regulatory bill, 59 to 39. Democratic Congressional leaders and the Obama administration must now reconcile it with the House bill that was passed in December.
Germany's parliament approved the $1 trillion effort to stabilize the euro, though the opposition Social Democrats voted to abstain. The German contribution will be about $183 billion, as well as a $22.4 billion euro contribution to Greece. The US Senate passage of their version of the financial reform bill still creating uncertainty...
How oversold were we midday? At levels we have rarely seen. I have struggled to explain how truly rare the market internals have been this week, and especially today. Here are a few examples.
How much would the SEC single-stock circuit breaker have helped on the big market drop on May 6? Jeff Rubin at Birinyi Associates put out an interesting note this afternoon, about what would have happened on May 6 if the SEC single stock circuit breaker had been in effect.
The markets have come off their lows as the euro has rallied against the dollar, yen, and Australian dollar. The rumor is of intervention...maybe, but last time the ECB itself intervened was years ago...it is possible that constituent banks like the Bundesbank or the Swiss National Bank may have intervened, but even then it is a fairly rare occurrence.
I have been asked if the single-stock circuit breaker rules that were recently proposed by the SEC are in effect. The answer is no. The SEC stated that there would be a 10-day public commentary period on the new rules once they are published. ... The rules have not yet been published in the Federal Register, so the 10-day comment period has not even started.
Federal regulators and U.S. securities exchanges have a new plan to keep an epic dive in the stock market from happening again.
Many of the top hedge funds have had to readjust their investment strategies to reduce risk amid volatile global markets.