that is why FCX is hanging in and also the blockade was lifted in Indonesia yesterday. So both positive. Cut in dividend is to preserve cash and once oil stabilizes FCX will move again. So all this is noise in the short term. Stocks go up and they go down so time your buying and have patience.
Refinery strike and Euro weakness. If you look at the technicals its almost bottomed, maybe 37 and then back up a couple points to 39-40. Divident is still 60 cents per qtr which is excellent. Just enjoy the ride up when brent recovers which will be shortly.
If it were to crash it would have dumped in after market close, like Citi jumped from 52 to 54 BAC dropped from 16.11 to 15.86, MAYBE it might hit 15.51 tmrw but I think it will run up to 16.50 - 16.75. There was nothing negative the Fed said and when they give the Fed the new plan by Sept 30 the stock should be in the 20ish and will run to 25. So shorts just cover and run for cover.
BP just has too too many assets, and its buyout value is probably close to 85-90 bucks a share. The buyer has to be someone like shell or exxon or chevron somebody with muscle. Exxon would make a good partner as well since both are in Russia together.
BP has a tonne of assets and those assets are worth a lot, hence BP is holding up. Also BP management is very savvy. They are good managers.
Last night Oil fell 2.7 percent to 65 and all other commodities also took a tumble including Copper and Gold after the Swiss people voted for their SNB not to be Buying and hoarding Gold. If the referendum had passed price of gold would have shot thru the roof and maybe FCX wud be trading at 29 this morning.
their earnings were not good. Earnings dropped 32 percent, besides the threat of strike looms even though for now the unions have agreed not to strike, besides price of metals is weak and is dropping, besides FCX invested a lot in the Gulf Of Mexico Oil Wells/drilling and with Oil blowing up to 75 dols per bbl, all these geopolitical affects are hurting the stock.
Have stocks hit a bottom? We never know for sure until we get to look at it from a rear view mirror. On a near term basis, if yesterday's low (S&P 500 at 1820) wasn't a near term bottom, it is probably very close to a bottom. However, that doesn't mean stocks are in for a V shape recovery. If you look at the charts of the S&P 500 during the two periods after QE1 and QE2 ended, April-August 2010 and July-November 2011, respectively, stocks went sideways after the initial plunge. The initial low was broken or retested along the way. It took a few months for stocks to finally settle down and resume their uptrend.
Although there was heavy selling this morning and a decent bounce in the afternoon, we still have no capitulation. I thought we had capitulation today but it looks the dip buyers and short coverings. The S&P 500 is only 7.4% off it record close. It hasn't even had a correction (10% correction would take it to 1810). Dip buyers are too fast to buy and yet, there wasn't enough buying to turn the trend around. Both the short term and intermediate term trends are still down. The stock market, which has being rising nearly non-stop from November 2012 to early September 2014, is going through a mean reversion. Instead of dip buying and V-shaped bounces, we are likely to see more rip selling and inverse-V slides in the next few months. In the very near term, the outperformance by the small caps suggests that stocks could be close to a near term low. A retest of today's low on lower volume will likely bring in more dip buyers. With that said, the character of the market has changed. Volatility helps short term traders. If you are looking for long term positions, be very careful and go slow.
Notable earnings due out on Thursday include: GS, UNH, COF, DAL, BHI, SLB, AMD, GOOGL, SNDK and XLNX.
and a lot of the stocks recovery especially Tech as well as OIL and Industrial, we had the CAPITULATION today and we shall see RECOVERY from here back to 2000 on the S&P500. We should see the market open high and continue to climb. Have a nice day.
We need to see capitulation but technical damage has been done so cant tell how far we will slide, but FED once again will come to the rescue with QE4, this US sanction and EU sanction against Russia is costing the Europeans a lot more than the US. Besides all the gurus claim after a BULL run comes Recession, but with the Bank CEO's claiming improving US economy its seems to be a tug of war between 2 opinions.
By holding onto the gains, stocks are giving investors a chance to breathe a sigh of relief. However, the morning gain followed by afternoon selloff continued to suggest that the gains were driven by short sellers covering their positions. It will take a lot more rallies to get real buyers in and the major indexes out of their downtrend. The S&P 500 will need to reclaim its 200-day moving average which stands at 1906. Should that happen and the much-watched moving average holds, we are likely to see dip buyers making moves. We are at the beginning of the earnings season which doesn't look too bad for now.
Notable earnings due out on Wednesday include: AXP, BAC, LVS, EBAY and NFLX.
It has mostly been sunny skies in the stock market in the past two years. Now when it rains, it pours, as if it tries to make up for the lack of rain in the prior two years. The Russell 2000 is now down for six weeks in a row. Last time that happened was in 2005. Stocks are due for an oversold bounce but there is little reason for buyers to get in, as we haven't seen a capitulation. After all, the S&P 500 is only 5.2% off its record close on September 18.
Earnings season starts next week. It is likely to give investors a better picture in terms of how those global grow concerns will affect companies' bottom line. C, JPM, WFC, INTC, JNJ and CSX are due to report on Tuesday. AXP, BAC and NFLX report on Wednesday, followed by DAL, GS, GOOGL and UNH on Thursday. The week finishes with reports from GE and MS.
Wait till after the earnings or just before the end of the month to get in as by then all the selling and window dressing by the funds would have been completed.
The month of October is the end of the Fiscal year for the Mutual Funds, Hedge Funds and Pension Funds etc They will sell to lock in their profits. It happens every year. Normally the month of September is a disaster but since everyone was expecting September to blow up the market did the opposite, it packed the punch in the month of October. Also remember the market has gone up since 2009 without any major correction. I think the market capitulated this morning and hopefully we should stabilize. I would still wait, maybe intel will hit 27-28 area again where the support lies and is a good entry point. I was lucky I got out at 35 as I needed the cash to buy my dream home. Have a nice day and be patient. Market will end with S&P at 2000 for 2014.
As much as day before yesterday's rally was about being overly jubilant, yesterday's selling felt a little too panicky. After all, the U.S. economic data continued to be respectable. While stocks plunged today, both the 10-year and 30-year bond yields were unchanged, signaling that bond yields may have hit a near term low. Investors have been pulling cash out of stocks but they didn't put it into bonds. Eventually, those cash will have to be invested and stocks look to be the best place to go. That being said, a selling isn't over until it is over. It will probably take a further capitulation before buyers step in. The S&P 500 made a closing low today but held yesterday's, as well as October 2, intraday low. The Russell 2000 held yesterday's intraday low also. We'll see whether that can give stocks a silver lining. For the S&P 500, watch for support near 1925, followed by 1905, its 200-day moving average.