No Bailout for CIT
Negotiations on a bailout for CIT Group
(CIT) have broken down, likely spelling the end of the century-old financial firm. According to The Wall Street Journal
CIT reps were scrambling last night to secure a line of at least $2 billion from current debt-holders. But the company said last night “there is no appreciable likelihood” that it will receive any rescue package in the near future.
All eyes will be on how the nation’s economy can absorb this mess, particularly small and midsized businesses in California. CIT’s bankruptcy would mark the biggest failure of a financial firm for 2009 and since the government allowed Lehman Brothers to collapse. From the Bull Pen
: Despite the grim news, bulls can look to Wells Fargo
(WFC). A check of the daily chart will show the stock has broken the downtrend since mid-May. A sell stop can be set near $22-23, depending on your risk profile. From the Bear Cave
: For a short term trade, bears can look to Visa
(V). See the heavy resistance at $64? Those playing the downside can set a buy stop above that level. Quick Check Around the World
Asian trading closed with the Hang Seng
0.81%, and Taiwan 0.62%.
Glancing towards Europe, we see the FTSE
As of 8:15 AM EST, S&P Futures
are trading +0.300 to 927.50 and Nasdaq futures
are -2.000 to 1495.25. A Look at Commodities
Over in commodities, crude oil is
trading -0.38 to 61.16 while gold
is -1.00 at 938.40 this morning. Silver
is +0.200 to 13.21 and copper
+0.00 to 238.25.
The dollar index
is -0.0350 to 79.4250. On the Radar
08:30 Initial Claims
09:00 Net Long- Term TIC Flows
10:00 Philadelphia Fed -5.0%
Click here for the full trading radar
Thirsty Thursday! Good luck!
No positions in stocks mentioned.
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