Week Ahead Post: S&P 500

Happy Halloween All,

Just a few concepts to consider. I've had to include an "alternative" count in case the S&P500 keeps chugging. I'm surprised by how strong the action was on Thursday to the "Greek Debt" deal. Who thinks the Greeks are going to honor even 50%?

Oh Well....

On a related note, please see MF Global for an example of "reaching for yield" to juice the bottom line.  Jon Corzine, in a "shocking" development, dusts the company on essentially one bad trade.  Guess those Spanish and Italian bonds were a little riskier than we thought....

Market Commentary 30OCT11

Addendum:

The History of Halloween

24 comments:

Matthew said...

The Greek debt deal is a joke. A trader from one of those evil wall street banks sent me a note that said, among other things the scope of this haircut only reduces total debt outstanding by ~30 percent, which is just not going to do the job.

I suspect that if they brought their debt to 0, they would still have problems because debt is a symptom of their spending problem, not the cause of it.

Pretend for a minute that you are hell-bent on bailing out your banks and that there are only two ways to do it:
1. Give money to the banks
2. Give money to the corrupt bureaucracies that borrowed from the banks and hope that all of it comes back to the banks in the form of loan repayment.

To me, it says a lot about the viability of the European Union (especially the EMU) that countries would chose option 2 instead of option 1.

Andy T said...

Good point Matthew.

I'm almost positive that the end of the euro will bring about the c-wave down ... Everyone will over react to that event, but it will be an event...

Andy T said...

Anyone else surprised by the way the Philly "dog killers" are taking it to the cowboys?

I am.

QQQQ said...

Tnx! AT

2 bearish and 1 bullish charts, so you're kind of feel'n 66.679% Bearish?

@Matthew... maybe China will buy their debt...

Thx! RA... for all ya do :)

working in Kailua-Kona until next fall ...talk about inflation... regular gas $4.58, name brand smokes $8.50-$10.50/pack, most food items seem to be about 25% higher.

Rent a car?... forget it unless your compamy is paying for it. Got a car for $680/mo, after the state adds their bullshit taxes and fees = $1207/mo... (hehe, my company adds 17% to that and bills the govt, what a racket)

While looking for an apartment, talked to 2 locals that would rent me a room but would have to move when they lose their house. One of them lost their house to the IRS... $1M+ home they couldn't afford, both parents have 2 jobs each and still can't make the payments.

AmenRa said...

Andy T

This is what happens when there is no real preseason and the defense has to learn a new system.

AmenRa said...

and...

http://www.zerohedge.com/news/clearinghouses-told-prepare-mf-bankruptcy-risk

MF Global to file for bankruptcy.

AmenRa said...

and...

BOJ finally intervened.

BinT said...

http://www.bloomberg.com/news/2011-10-30/europe-might-have-blown-last-chance-to-end-its-crisis-view.html

Europe Might Have Blown Last Chance to End Its Crisis: View

AmenRa said...

Why da hell is the VIX lower?

AmenRa said...

That movie "Margin Call" seems prescient all of a sudden.

AmenRa said...

re:VIX

n/m it down from the open but did gap higher at the open.

AmenRa said...

MF GLobal 6.25% bonds trade at 36.75 cents after bankruptcy.

LB feedback? How bad does this affect those who held the bonds over the weekend in expectations of a solution?

Anonymous said...

31-Oct-11 09:52AM Hondas US Sales Grew in October in Spite of the March Tsunami Wall St. Cheat Sheet
09:37AM Cooper Tire & Rubber Co. Earnings Cheat Sheet: Margins Suffer for Five Quarters Straight, Profit Drops Wall St. Cheat Sheet
28-Oct-11 04:05PM AutoZone to Release First Quarter Earnings December 6, 2011 GlobeNewswire
04:05PM AutoZone to Hold Stockholders' Meeting December 14, 2011 GlobeNewswire
01:25PM Inside Tesla Motors Inc.s Upcoming Third Quarter Earnings Release Wall St. Cheat Sheet
01:04PM AUTOZONE INC Financials EDGAR Online Financials
07:55AM S&P 500 Analyst Recommendation Changes for Oct. 28 at Bloomberg
07:55AM S&P 500 Analyst Recommendation Changes for Oct. 28 at Bloomberg
27-Oct-11 04:13PM A Choppy Market Requires A 'Small Ball' Trading Plan Investor's Business Daily
12:36PM Dollar Thrifty Automotive Group Inc. Third Quarter Earnings on Deck Wall St. Cheat Sheet
11:00AM Collision Shops Can Now Benefit From ALLDATA Market GlobeNewswire
09:55AM Insiders Trading ENTG, AZO, SGAS, AN at TheStreet

http://www.finviz.com/quote.ashx?t=AZO

Stock looks like it's heading toward 'make or break'-territory...

ibid.

AmenRa said...

The market is doing all it can to not make new daily lows. This treading along the bottom doesn't look too good.

Andy T said...

Tony LaRussa RETIRES.

Awesome for him

Andy T said...

Kim Khardasian...

Filing for Divorce. 72 days...

Shocker.

Anonymous said...

"....He goes to the back room at the shop where he often works after school and scans the bikes and bike parts. Many are donated. Some are found, abandoned on bike racks. The key, Reggie says, is to find the right frame. It has to be solid. It has to fit the rider's build.

Always, there are diamonds in the rough that, with a little love and polish, can turn into something special.

Reggie was kind of like that, too _ a diamond in the rough _ when he first stepped into this warehouse on Chicago's South Side that is home to the Blackstone Bicycle Works.

That was two years ago. He was 13, a good kid _ capable, by all accounts, but a bit lost. Then he put on a bike mechanic's apron for the first time, and something clicked.

Certainly, the fact that he could work 25 hours to earn a free bike was enticing.

That's why most kids come to the after-school program at this shop in the city's Woodlawn neighborhood. For these boys and girls, a bike represents freedom, a way to fly more quickly through the gang-ridden streets that surround the shop.

They feel the wind on their faces, and can be alone with their thoughts. Many ride to places they don't often go __ to the lakeshore or a museum or to the Lincoln Park Zoo, 10 miles to the north.

Grinning broadly, sixth-grader Kaniya Coleman says, "When I ride I feel like a super woman." She recalls a trip to the beach this summer when she and others wore capes while they rode in a pack, whooping and hollering all the way. "It was awesome."

For Reggie, there also is comfort, and freedom, in just being here in this place for a few hours - in working with his hands, in building something, in belonging...."
http://news.ino.com/headlines/?newsid=6898178680601

decent Economics leads to better Finance..

AAIP

AmenRa said...

Markets are still trying to bounce. Bleh.

AmenRa said...

Dow trying to hold 12000. It's not that important.

BinT said...

http://www.huffingtonpost.com/charles-gasparino/jon-corzine-mf-global_b_1064481.html

Jon Corzine's Lesson for Wall Street Risk Takers

BinT said...

Corzine isn't close to being among the street's best traders. so he didn't waste any time screwing up. Less than a year after taking the job, he and his traders made a calculated bet that Europe wasn't the basket case that we now know it truly is. His traders bought more than $6 billion sovereign debt most of it issued by Italy and Spain, the two countries that are now replacing Greece in the likely to default department.

AmenRa said...

I love all of the pundits on CBNS/Bloomberg saying that this is only a soft patch because the market was overbought. MF Global was a small firm nowhere near a Lehman.

...but all of the hedge funds, TBTF, etc holding foreign sovereign debt should experience similar write downs IMHO.

BinT said...

http://www.ritholtz.com/blog/2011/10/back-of-the-envelope-on-italy/

Back of the envelope on Italy


...Don't try this with US debt, or you will see why Ben is never seen smiling anymore.

Anonymous said...

http://www.finviz.com/

'Equity' Indices closing 'on the Lows'...
~~~
http://www.finviz.com/quote.ashx?t=AZO

~323.59

"slip slidin' away.."
~~~
http://www.finviz.com/quote.ashx?t=HANS&ty=c&ta=1&p=d

P/S 5.20

Hansen Natural Corporation..this puppy is going to 'Crack', as well..
~~~
ibid.

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