Week in Review
Looking back at the week that was...
Caution turned to panic this week after Tuesday's massive sell-off which saw the DJIA, the eldest sister, shed 416 points on its way to a 500 point loss for the week. The cause of this harsh sell-off has been attributed to many factors, namely concerns in the sub-prime market, Greenspan's recessionary talk, the end of carry trade, Middle East turmoil, China's troubles, and weak durable good orders. All of these concerns can be related to future growth concerns both here and abroad.
Bonds rallied as yields touched their lowest levels in nearly three months. Equities were not the only securities under pressure as commodities experienced sharp declines over possibilities of a global economic slowdown.
As mentioned in last week's Week In Review, the markets appeared to be tired and a break of the bottom channel of the current uptrend would increase the possibilities of a multi-month correction. Given the complacency of the market, I felt it prudent to shift most of my firm's assets into cash prior to the downfall. In this type of environment, it is crucial to be patient and follow my updated "Eye on the Ball" section in this week's Morning Cup of 'Jo for current short term support and resistance levels. Be careful and continue to play your cards close to your chest.
Four Sisters Performance
A strengthening Yen places added pressure to those involved in the currency's Carry Trade, to close out their positions. Economists worried that this could have a negative impact on the markets. (Fri 02)
A System glitch in the Dow Jones, due to an unprecedented high trading volume, intensified Tuesday's sell off. (Wed 28)
Positive economic data provided a bit of comfort in this weeks market meltdown. Announced Thursday, the Manufacturing (ISM) , Consumer spending, as well as Personal Income data, all proved to be positive signs of economic growth. (Thurs 01)
In an aggressive manner Oracle (ORCL) announced its plan to buy Hyperion for $3.3 billion in cash. The merger is designed to provide Oracle with a wide array of products in hopes of toppling rival SAP AG. (Fri 02)
Trouble continued in the Sub-Prime market as home mortgage lenders posted an increase in late payments up to 19% from 15.2% originally. (Fri 02)
A job you most likely won't see on Career Builder might come available as Berkshire announced plans for Warren Buffet to eventually step down. As of now the board has selected three unidentified potential candidates.
Given the harsh sell-off of China's Shanghai Stock Market this week, more troubled times could lie ahead. (Fri 02)
Dell (DELL) 4Q profits fell 33% from last year, as the Computer making giant is struggling to maintain market share. (Thur 01)
Despite positive growth forecasts, XM Satellite Radio (XMSR) share price failed to advance due to current market conditions. (Tues 27)
American Insurance Group (AIG) gapped up in Friday's trading, as the Dow component reported earnings and approval of stock repurchase plan. (Fri 02)
Market Movers: Winners and Sinners
The information on this website solely=
reflects the analysis of or opinion about the performance of securities an=
d financial markets by the writers whose articles appear on the site. The v=
iews expressed by the writers are not necessarily the views of Minyanville =
Media, Inc. or members of its management. Nothing contained on the website =
is intended to constitute a recommendation or advice addressed to an indivi=
dual investor or category of investors to purchase, sell or hold any securi=
ty, or to take any action with respect to the prospective movement of the s=
ecurities markets or to solicit the purchase or sale of any security. Any i=
nvestment decisions must be made by the reader either individually or in co=
nsultation with his or her investment professional. Minyanville writers and=
staff may trade or hold positions in securities that are discussed in arti=
cles appearing on the website. Writers of articles are required to disclose=
whether they have a position in any stock or fund discussed in an article,=
but are not permitted to disclose the size or direction of the position. N=
othing on this website is intended to solicit business of any kind for a wr=
iter's business or fund. Minyanville management and staff as well as co=
ntributing writers will not respond to emails or other communications reque=
sting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.= span>
Daily Recap Newsletter