Its all going to add up today and send Spy way down before market closes. No one will want to be long SPY over weekend with worldwide volatility exploding. Next week headlines will read
Greek Default and Europe Shudders
Putin - 1/3 of Ukraine is mine and I want more. Much More.
Saudi Arabia in Trouble. Isis now on both side of country and closing in.
And of course there are other headlines I'm omitting in other parts of the world, that are just as volatile and certain to happen. Spy free falls next week so be very careful longs.
just keep riding higher into the sunset? And for those who say the Greek election - probably default is a non-event I tend to differ. Since I remember what Greece did to world markets 2, 3 years ago. With that said my hunch is the market flat lines tomorrow and then sells off in the afternoon. There will be a ton of Greece news flooding all news channels/internet and that will finally get market's attention.
Question is - how much attention?
since shorts will cover going into Feye earning's report with a strong probability the the company (on Feb, 11) gives strong forward guidance as the stock gets pegged at $65 plus.
since it obvious Gold climbs after ECB stimulus news and then rockets higher after Sunday's Greece election. Thinking NUGT come Monday could be $28 a share and climbing like a mad man.
but better yet we close tomorrow near $40. You can't buy P.R. like FireEye will receive tonight. And though the President won't mention Feye out right, investors will certainly know the leader of our country is pushing cyber security protection to the MAX, after his speech concludes. FireEye is by fare the most oversold cyber security stock on the market and ripe for a 20% jump if not more. Suggest you buy in now or in AH to enjoy the long ride up.
Time to buy and hold since our President will say "Cyber security" is a Clear and Present danger.
Free Fall - FXCM deal with Luk (now looks awful) for shareholders. No one read the fine print on Friday - since it never came out. Not its public and shareholders realize FXCM going forward is only a "shell" of the company it used to be.
Those who sold their FXCM shares last Friday made the right move. It appears now that FXCM will open in the $2 range and flat line all day. Might not even break out over $3 today since LUK terms have come out (regarding 300 million dollar loan) and it appears FXCM stock is now worth far less then Credit Suisse $4 projection. Wouldn't be surprised to see the stock close at $2 even today - maybe slightly lower since most investors cashed out Friday and their will be very view buyers today know the stock could drop at a moments notice with down grades coming in.
The Wall Street Journal reported earlier that the foreign-exchange broker also considered a private-equity capital injection, but a deal with Jefferies was seen as likely to happen faster, according to a person familiar with the matter. Jefferies, which is part of Leucadia National Corp., is investing $300 million in cash into FXCM in the form of a $300 million senior secured term loan with a two-year maturity and an initial coupon of 10%.
Let's the games begin. As in "skin the short".
"Leucadia's support and this financing are by far the best alternative for FXCM, our customers, our shareholders, and all other relevant constituencies," FXCM CEO Drew Niv said in a statement.
Both of your guys (probably one poster) need to go back to basic math. The Jefferies deal puts FXCM in the $6 to $8 range easy. That's still a massive loss from the previous days high though. Suggest you get "math for dummies" soon and then go long FXCM.
Because the market will be in a good mood after hours and come Tuesday. Short are so screwed.
Dude - you can't see the forest for the trees. Jefferies has already come out and side they are interested in doing an equity deal with FXCM. Do you need to look up the definition of "interested"??? In fact Jefferies has probably already submitted their offer to FXCM and the company right now is probably comparing it to other options. Once funding is in place "your short position" goes up in smoke and your bank account starts flashing "empty signs".
to be considered along with Jefferies rescue package. Bottom line - FXCM investors can some what rest easier today - over long weekend knowing the company is going to work out a deal and be in business come next week. Stock market today is already Green and come next week the Swiss blindside will start fading into a distant memory. Looking more and more like a $3 to $4 stock price open later today or on Tuesday
Actually that's a good sign if it stays closed until Tuesday. That means the company is working out a deal and making sure the T's are crossed and the I's dotted. I'm sure there is more then just one or two financial firms FXCM looking to work out a deal with with the largest currency trader. So it might be wise for management to
take there time and see who offers then the best capital infusion on reasonable terms.
make money. Big investors know FXCM can be a money machine going forward and will certainly work out a deal to keep the currency broker in operation. No one is saying the FXCM working model is broken. Just the opposite. Its a very successful business but got caught between a rock and a hard place with the Swiss news.
In any case look for the stock price too trade way higher off its pre market lows when it opens for trading.
The stock had a consensus analyst price target of $17.95 before this news broke, and a 52-week trading range of $12.05 to $17.97. Look for the big boys to sweep in and buy FXCM shares at open.
Citi has FXCM pegged at $5 and Credit Suisse $4. These projections were after the Swiss news so anyone who bought under $3 today should do very well when stock opens.