Daily Markets - So What’s Going To Happen When The Insanely Large Derivatives Bubble Pops?

---

• So What’s Going To Happen When The Insanely Large Derivatives Bubble Pops?
• Narrowing TED Spread Points To Lower Default Risk
• WealthTrack: Christopher Davis On The “right Thing To Do”
• Humor Corner: No HOPE And No CASH
• Forex Trading: Eurozone Sentix Investor Confidence
• Something Big Is Brewing Under The Surface In Silver
• An Unbalanced China Bet?
• Forex Trading: Negative NFP Release Weakens The Dollar Vs. The Majors
• Crude Oil May Consolidate, Gold Streak Reaches Nine Sessions
• Growth & Income Stock: Mariott International
• Bear Of The Day: Goldman Sachs (GS)
• Bull Of The Day: AMERCO Inc. (UHAL)
• Aggressive Growth Stock: AMERCO
• Momentum Stock: Herbalife, Inc.
• Forex Trading: Canadian Dollar Down On Dismal Employment Data
• Tuesday’s FOMC Meeting Is D-Day For U.S. Stock Market
• The Miracle Of Flight Has Never Been Cheaper
• Four Diversified Plays On Asia

So What’s Going To Happen When The Insanely Large Derivatives Bubble Pops? Posted: 09 Aug 2010 03:01 AM PDT Today there is a horrific derivatives bubble that threatens to destroy not only the U.S. economy but the entire world financial system as well, but unfortunately the vast majority of people do not understand it.  When you say the word “derivatives” to most Americans, they have no idea what you are talking about.  In fact, even most members of the U.S. Congress don’t really seem to understand them.  But you don’t have to get into all the technicalities to understand the bigger … [visit site to read more]

Narrowing TED Spread Points To Lower Default Risk Posted: 09 Aug 2010 02:40 AM PDT The TED spread (i.e. three-month dollar LIBOR less three-month Treasury Bills) is a measure of perceived credit risk in the economy. This is because T-bills are considered risk-free while LIBOR (i.e. the interest rate banks charge each other) reflects the credit risk of lending to commercial banks. An increase in the TED spread is a sign that lenders believe the risk of default on interbank loans (also known as counterparty risk) is increasing. On the other hand, when the risk of bank defaults … [visit site to read more]

WealthTrack: Christopher Davis On The “right Thing To Do” Posted: 09 Aug 2010 02:32 AM PDT On this week's WealthTrack, Consuelo Mack interviews third generation value investor Christopher Davis of Davis Funds. This former Morningstar "Money Manager of the Year" discusses how family tradition helps him find long term financial values. Note: The transcript of this interview is not available yet, but will be posted here as soon as it … [visit site to read more]

Humor Corner: No HOPE And No CASH Posted: 09 Aug 2010 02:25 AM PDT Remember when Ronald Reagan was president? At that time, we also had Bob Hope and Johnny Cash. Now we have Obama, no HOPE and no … [visit site to read more]

Forex Trading: Eurozone Sentix Investor Confidence Posted: 09 Aug 2010 01:31 AM PDT The euro relatively unchanged after June's investor confidence came in better than the 1.6 survey, at … [visit site to read more]

Something Big Is Brewing Under The Surface In Silver Posted: 09 Aug 2010 01:01 AM PDT Now that we have a weekly swing low and a higher high I think the odds are heavily in favor of the intermediate cycle bottom being in place for gold. Just like all the calls for a market crash back in June, the calls for sub $1000 gold are probably going to be a bit premature. I really doubt we will ever see $1000 gold again during this bull market. It was simply getting too late in the intermediate cycle for gold to have enough time to make it all the way back to $1000. Just like we … [visit site to read more]

An Unbalanced China Bet? Posted: 09 Aug 2010 12:03 AM PDT I have been somewhat skeptical of the current stock market rally but I haven’t quite been able to put my finger on the reason - until I looked at the market relative charts to see where the leadership has been coming from. The downdraft that ended in early July was based on a double-dip recession scare. If Mr. Market truly believed that the recovery was real, then we should see leadership from sectors such as Consumer Discretionary stocks. The chart below shows the relative performance of the … [visit site to read more]

Forex Trading: Negative NFP Release Weakens The Dollar Vs. The Majors Posted: 08 Aug 2010 11:54 PM PDT Negative NFP Release Weakens The Dollar Vs. The Majors Following a relatively calm trading week, the U.S. Non-Farm Payrolls data managed to boost volatility in the market, bringing down the U.S. dollar in the process. The dollar fell to an 8-month low against the yen and to its lowest level against the euro since May. The main question now is whether the dollar will continue to slide, or will a correction take place? Economic News USD - Dollar Tumbles Following Disappointing Employment … [visit site to read more]

Crude Oil May Consolidate, Gold Streak Reaches Nine Sessions Posted: 08 Aug 2010 11:51 PM PDT Commodities – Energy Crude Oil May Consolidate Crude Oil (WTI) $81.05 // +$0.35 // +0.43% Commentary: Last week saw crude oil advance over the $80 level for the first time since May. Traders took profits on Friday, however, after U.S. nonfarm payroll data came out weaker than expected. This week is looking rather light on the U.S. economic front. The FOMC will make its rate decision on Tuesday, but no significant actions are expected from the central bank. Initial jobless claims on Thursday … [visit site to read more]

Growth & Income Stock: Mariott International Posted: 08 Aug 2010 11:05 PM PDT Marriott International (NYSE:MAR) will continue to benefit from improving conditions in the hotel industry. In the US, the hotel industry is experiencing higher occupancy levels, higher average daily room rates, and higher revenue per available room. Meanwhile, the international hotel market is even stronger than in the US. Growth and Income The company is expected to grow its earnings per share 15.5% in 2010, 24.2% in 2011, and 15.0% over the long term. The stock also offers investors a dividend … [visit site to read more]

Bear Of The Day: Goldman Sachs (GS) Posted: 08 Aug 2010 11:05 PM PDT We are downgrading our recommendation on Goldman Sachs (NYSE:GS) to Underperform from Neutral, based on the effects related to Securities and Exchange Commission (SEC) charges and the negative impact of new financial regulatory reform. Litigation issues not only impact a company’s reputation but also dent its financials. Further, the new regulatory reform will continue to pressure trading revenues, which will hurt the profitability of Goldman in the upcoming quarters. Our six-month target price of … [visit site to read more]

Bull Of The Day: AMERCO Inc. (UHAL) Posted: 08 Aug 2010 11:05 PM PDT AMERCO (NASDAQ:UHAL) is the parent company of U-Haul International, the largest consumer truck rental company in the world. It is also the second largest self-storage company in North America. The impact of the decline in housing and a decrease in apartment occupancy rates appears to have ended. We expect continued improvements in operating parameters. Based on a low valuation of EBITDAL, we continue to rate the stock Outperform with a price target of $80.00 a share. The stock has usually been … [visit site to read more]

Aggressive Growth Stock: AMERCO Posted: 08 Aug 2010 11:05 PM PDT AMERCO (NASDAQ:UHAL) hit a multi-year high following the latest earnings surprise. Net income almost doubled expectations. Company Description AMERCO is the parent company of U-Haul, the widely recognized moving and storage company. Additionally, AMERCO is a parent to 2 insurance companies and a real estate company, which comprise a small portion of the balance sheet. Crushed Estimates On Aug 4 AMERCO reported first-quarter results for fiscal 2011 that included net income of more than $63 million, … [visit site to read more]

Momentum Stock: Herbalife, Inc. Posted: 08 Aug 2010 11:05 PM PDT Herbalife, Inc. (NYSE:HLF) just hit a new multi-year high after reporting better than expected Q2 results in early August that included a 42% earnings surprise. Estimates have since jumped higher, with the current year up 13% on the news. Second-Quarter Results Revenue for the period was up 21% from last year to $689 million. Earnings also came in strong at $1.32, 42% ahead of the Zacks Consensus Estimate, boosting the company’s average earnings surprise over the last four quarters to 23%. The … [visit site to read more]

Forex Trading: Canadian Dollar Down On Dismal Employment Data Posted: 08 Aug 2010 10:30 PM PDT Welcome to a brand new week of forex trading! On today’s canvas is the 4-hour chart of the USDCAD pair. As you can see, the pair has been trending south for the past month. After hitting a new 3-month low of 1.0107 on August 5, it then rallied strongly. At present, it is trading below 1.0300. A break above this could send it to 1.0350 or at 1.0400. However, it looks like the pair is experiencing some selling pressure at 1.0300. Interestingly, this mark almost falls in line with the … [visit site to read more]

Tuesday’s FOMC Meeting Is D-Day For U.S. Stock Market Posted: 08 Aug 2010 09:22 PM PDT As poor economic news continued to pour in last week, punctuated by Friday’s dismal Non Farm Payrolls report, the chatter regarding “QE2″ or “QE Lite,” some sort of additional quantitative easing by the Fed, rose to nearly hysterical levels by the close of business Friday. We’ll talk in a moment about  how terrible last week’s data really were, however, it’s important to look ahead to Tuesday’s FOMC meeting and why it’s “D-Day” for U.S. and global markets.  The rumblings from various … [visit site to read more]

The Miracle Of Flight Has Never Been Cheaper Posted: 08 Aug 2010 08:32 PM PDT There’s been a lot of complaints lately about air travel because of crowded planes, fees for checked luggage, security lines, etc., and there’s a lot of nostalgia for the good old days of free food, no extra fees for baggage or anything else, half-empty planes where you could often get 2 or 3 seats to yourself, no security issues, etc. But I don’t think anybody is too nostalgic for the airfares of yesteryear, which were 66% higher in 1993 at an average ticket price of $541 … [visit site to read more]

Four Diversified Plays On Asia Posted: 08 Aug 2010 08:17 PM PDT As U.S. equities continue to show signs of instabilities due to fears of crippling debt, deflation and high unemployment, many have turned to alternative regions, in particularly Asia to seek returns. When speaking of Asia, the first nation to come to mind is China, but there are many more nations that are likely to continue to outperform the world's second largest economy.  As a region, Asia has drawn attention due to its large growth rates, insatiable demand for commodities, cheap … [visit site to read more]

You are subscribed to email updates from Daily Markets To stop receiving these emails, you may unsubscribe now.	Email delivery powered by Google
Google Inc., 20 West Kinzie, Chicago IL USA 60610