Two of the biggest movers are going in opposite directions. Yellow Media inc (YLO:TSX) has been on a losing streak for a few months, there was a big flush of sellers over the past two sessions as the stock fell 50% from $3 to just above $2. Today there is a rebound as the stock gapped up on the morning trade, currently +18% to $2.70.
Contributors
David (3)
Futures & options trader, B.A. Economics - University of Colorado at Boulder.
StockJock-e (45)
Options trader, technical analyst, drinker of microwaved instant coffee.
June, 2011
What are the Greek austerity measures?
With Greece being the main focus of the markets once again, what exactly are these austerity measures the protestors are so angry about?
The BBC has a good piece summarizing it for those of us with low attention spans, read on!
$200/bbl oil? It’s more likely than you think!
In a surprise move today the IEA (International Energy Agency) decided to release 60M barrels of oil from the strategic reserve, 30M coming from the U.S. strategic reserve. This sent oil prices sharply lower to touch the $90 level, which is great for you H2 owners, but what’s the catch?
Usually oil from the SPR (strategic petroleum reserve) is supposed to be use in emergencies, like hurricane Katrina. Using the SPR to mess around with prices smells of desperation, but why?
Michael Krieger, enlighten us if you will:
QE3? Jim Grant says yes.
Bloomberg’s Margret Brennan, wearing green (the Margret Brennan indicator was broken, the markets were red yesterday!) talks with Jim Grant about the state of the markets and the Fed action we have seen, and are likely to see.
As Jim Grant and others have postulated, QE3 will most likely be announced if the markets take a tumble.
Click through for the 13min interview…
S&P 500 getting a bounce!
For you wave counters out there, I believe we are all probably seeing the same thing here. This week should be putting in a W4 top if this is just another bear market rally.
The 1300 level on the S&P should be the resistance level to watch if this is the case.
Paulson capitulates, sells entire stake in Sino Forrest
And so the drama comes to and end, in a filing from the company:
The announcement was made public in a regulatory filing for the period ending June 17. The disclosure states that Paulson’s position has fallen from 34,714,300 shares to zero, meaning the company has sold its entire 14.1 per cent stake. The filing does not disclose the date on which the securities were sold, or over how long a period they were sold. However, a few days after Muddy Waters released its report full of allegations against Sino-Forest, the company said in an interview that management had been in touch with John Paulson, who heads the fund, and he said that he continued to hold his position.
This is a complete 180 from his initial response where he came out in defense of Sino Forrest (TRE:TSX), but even the best of them can get fooled some of the time.
Paulson is best known for betting against synthetic collateralized debt obligations (CDOs) during the financial crisis and making his firm $15B in 2007.
Put/Call ratio at highest levels since 2009
Typically when we see a put/call ratio this high, its a sign that a bottom of some sort is near. We just had a good spike in the put/call ratio, next weeks trading will either confirm a short term bottom and prove this to be a valid signal, or continued weakness, which means longs are in for a world of hurt.
Click through to see the chart:
Rebound Fridays
Home building and Jobs reports with a slightly improved flavor put investors in a buying mood for the first time in 6 weeks.
The pace of construction of new homes quickened last month, the government said Thursday. And the number of people who applied for unemployment benefits fell last week to 414,000, more of an improvement than economists expected. Weekly applications for unemployment have been over 400,000 since April, a rate that suggests job growth is still slow.
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Once you opens Pandora’s box…
The IPO opened up much to much excitement, hitting $25.06 at the highs of session. What horrors would lie within?
