Weekly Market Review Letter March 19 , 2007
The Week Ahead: Much of the focus this week will be on the Tuesday and Wednesday Federal Reserve meeting which will determine interest rate policy over the near term. With the latest up-tick in consumer inflation combined with other conflicting inflation signals like the weak housing sector, the Fed will probably keep interest rates steady. Other noteworthy reports include Wednesday's leading economic indicators for February and Thursday's existing home sales for the same month.
Stocks to Watch: Shares of Accredited Home Lenders (LEND) have rebounded as the company said that it will sell $3 billion in loans to an undisclosed buyer, and Fremont General (FMT) also rallied but announced it will delay its 10-K Filing. Both companies are involved in sub-prime loan practices. Hewlett Packard (HPQ) announced an $8 billion buyback of its shares but beware of recent insider selling. Wells Fargo (WFC) rebounded after First Data (FDC) said it would buy its Instant Cash Services unit. FC Stone Group (FCSX) had a strong IPO debut on Friday.
Special Note: The sub-prime lending crisis is potentially the leading edge of a much broader unraveling of debt starting with high risk loans on down. As lenders practice more stringent requirements in giving out loans do to the perceived risk of default, ultimately this contributes to the slowing of economic activity leading to recession as the dominoes fall. Another concern is the record amount of NYSE margin debt which recently exceeded the previous all time high of March 2000 when the major indexes topped. Continue a defensive investment strategy.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
To view all of NobleTrading's historical newsletters, click here.
Click here to open an account.
NobleTrading Direct Access Trading
email: info@nobletrading.com
phone: 877.872.3311
web: http://www.nobletrading.com
Stocks to Watch: Shares of Accredited Home Lenders (LEND) have rebounded as the company said that it will sell $3 billion in loans to an undisclosed buyer, and Fremont General (FMT) also rallied but announced it will delay its 10-K Filing. Both companies are involved in sub-prime loan practices. Hewlett Packard (HPQ) announced an $8 billion buyback of its shares but beware of recent insider selling. Wells Fargo (WFC) rebounded after First Data (FDC) said it would buy its Instant Cash Services unit. FC Stone Group (FCSX) had a strong IPO debut on Friday.
Special Note: The sub-prime lending crisis is potentially the leading edge of a much broader unraveling of debt starting with high risk loans on down. As lenders practice more stringent requirements in giving out loans do to the perceived risk of default, ultimately this contributes to the slowing of economic activity leading to recession as the dominoes fall. Another concern is the record amount of NYSE margin debt which recently exceeded the previous all time high of March 2000 when the major indexes topped. Continue a defensive investment strategy.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
To view all of NobleTrading's historical newsletters, click here.
Click here to open an account.
NobleTrading Direct Access Trading
email: info@nobletrading.com
phone: 877.872.3311
web: http://www.nobletrading.com
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