Two Ways: Pump Up the Bailout?
Strengthen your portfolio in good times and bad.
In its latest monthly report, the Congressional Oversight Panel said the Treasury Department should consider expanding bailout programs to rid bank balance sheets of toxic assets should current efforts falter or if economic conditions further deteriorate.
In a story by Reuters, the Panel said the Treasury should also consider repeating the stress tests it performed back in April if the economy worsens beyond worst-case assumptions. Further, smaller banks are particularly at risk as they face billions in losses due to commercial real estate loans.
For more on the economy, see Toddo's Another Bubble or Deep Trouble?
From the Bull Pen: In times of uncertainty, there are stocks that live in their own world. Have a look at the biotech ETF (IBB), finding support at its 20 day moving average (currently at $76). If that fails, the next level of support is near $73 (50 day moving average and the double top breakout). Remember to set your sell stops.
From the Bear Cave: Sometimes parabolic moves lead to parabolic declines. Consider Caterpillar (CAT) if a correction is imminent with a tight buy stop above $48 resistance.
Quick Check Around the World
Asian trading closed with the Hang Seng 0.69%, India 0.43%, Shanghai 0.46%, Nikkei 0.58%, and Taiwan 0.38%.
Across the pond, we see the FTSE -0.30%, CAC 0.12%, DAX -0.43%
As of 7:35 AM EST, S&P Futures are trading -2.25 to 1005.25 and Nasdaq futures are -0.75 to 1611.75.
A Look at Commodities
Over in commodities, crude oil is trading +0.18 to 70.78 while gold is +1.800 at 948.70 this morning. Silver is -0.150 to 14.34 and copper +1.200 to 278.25.
The dollar index is -0.2200 to 79.1650.
On the Radar
08:30 Productivity 4.9% (cons.)
08:30 Unit Labor Costs -1.9% (cons.)
10:00 Wholesale Inventories -0.9% (cons.)
Click here for the full trading radar.
Good luck today!
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