Weekly Market Newsletter, 24 November 2008
The Week Ahead: The appointment of Timothy Geithner as the new Treasury Secretary in 2009 helped to lift the market sharply on Friday after a breakdown in the major indexes earlier in the week. The S&P 500 reached levels not seen since 1997. Existing home sales are due out on Monday. The preliminary GDP numbers for Q3 are released Tuesday along with consumer confidence and the Case Shiller Home Price Index. Wednesday brings the durable goods report and personal income & spending. The market is closed Thursday for Thanksgiving with a shortened trading session on Friday.
Stocks to Watch: Celanese (CE) warned that the 4th quarter and 2008 profits will miss analysts estimates. The stock dropped 41% to new all time lows. Anglogold (AU) secured a $1 billion bridge loan to refinance expiring convertible bonds and helped rocket the stock 43%. Other gold stocks rose sharply as well including Kinross Gold (KGC) which broke through its 50 day moving average. Alpha Natural Resources (ANR) received an upgrade from a major brokerage which helped lift the stock from a deep low.
Special Note: Yet another bailout is in store this time for Citigroup, one of the largest money center banks in the country. The Treasury will inject $20 billion from the congressionally approved TARP funds and receive an 8% preferred stock. In addition a $306 billion backstop will be provided against a pool of Citi's troubled assets. The deleveraging process of all assets classes will likely continue despite this news making it tough for the market to make any headway. There are still no technical signs of a bottom in place.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
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: Celanese (CE) warned that the 4th quarter and 2008 profits will miss analysts estimates. The stock dropped 41% to new all time lows. Anglogold (AU) secured a $1 billion bridge loan to refinance expiring convertible bonds and helped rocket the stock 43%. Other gold stocks rose sharply as well including Kinross Gold (KGC) which broke through its 50 day moving average. Alpha Natural Resources (ANR) received an upgrade from a major brokerage which helped lift the stock from a deep low.
Special Note: Yet another bailout is in store this time for Citigroup, one of the largest money center banks in the country. The Treasury will inject $20 billion from the congressionally approved TARP funds and receive an 8% preferred stock. In addition a $306 billion backstop will be provided against a pool of Citi's troubled assets. The deleveraging process of all assets classes will likely continue despite this news making it tough for the market to make any headway. There are still no technical signs of a bottom in place.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
Click here to open an account.
NobleTrading Direct Access Trading
email: info@nobletrading.com
phone: 877.872.3311
web: http://www.nobletrading.com
posted by Daniel Pipitone at
6:33 AM
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