1. BAC's revenue was only down -42% claiming that the worst is behind the company now. Countrywide debts may go unpaid, and a 75 million share buyback was underway.
2. Wells Fargo shocked the market by beating estimates (since they now calculate delinquencies at 180 days as opposed to 120 days. WFC is up 8.50 since this great news was released.
3. Even Wachovia bounced up 50% from its low of 9.08. WB shareholders got a boost of confidence as the new CEO Robert Steel purchased $16 million dollars worth of shares.
Ax's favorite Wall Street celebrity Jim Cramer appeared on SQUAWK Box Thursday in a pre-market rally playing the old tune "Happy Days are Here Again!" Everyone received a party hat, balloon, and a kazoo... The market had bottomed right??? The Housing Bill was a done deal right??? There was NOTHING holding back the banks right? How many times have we heard this song and dance this year?
Positive numbers from housing in that existing home sales were not as bad as they were last month... Foreclosures were up again, just not up as much as they were the previous month. Some people saw this as good news... others realized that the peak months of summer should be the best months of housing sales. It could be a long winter for home builders and existing home sales.Does this suggest that natural selection in has taken over?
Portfolio is up 13.24% a far cry from close to 100%. I will develop a more effective method of booking profits and even hedging options with OTM calls/puts.
Upcoming Economic Calendar for Next Week:
Monday, July 28, 2008
10:30a.m. Jul Dallas Fed Mfg Production Index: Previous: 0.0.
Tuesday, July 29, 2008
Wednesday, July 30, 2008
Thursday, July 31, 2008
8:30a.m. Initial Jobless Claims For Jul 26 Week: Expected: -8K. Previous: +34K.
Friday, August 1, 2008
Pick the Biggest Losers or Winners of a Recession?
Ideas MECAD may go BANKRUPT at his rate!
LVS earning per share a measly .04.
Anything like carpet, furniture, and irrigation supplies deserve a look as well.
SHW plenty of anecdotal evidence this was will be hurting during a recession as well.