Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Ways To Play: World Banks Get Out Their Scissors

By

Strengthen your portfolio in good times and bad.

PrintPRINT

World Banks Join Hands

Bloomberg reports that, in a global coordinated action, the Federal Reserve, European Central Bank, Bank of Canada and Sweden's Riskbank all cut their benchmark rates to counter the financial crisis. All institutions cut rates by halt a percentage point.

Switzerland also took part and, separately, China's central bank lowered its 1-year lending rate by 0.27%. In a statement, the FOMC said economic activity has slowed and the intensification of the financial turmoil is likely to put additional restraints on spending.

From the Bull Pen
: GoldCorp (GG) sitting above $25 remains healthy. Bulls can consider this play with sell stops below that level.

From the Bear Cave
: We should see a broad-based rally today and it could last for some time. But the picture remains bleak. Coach (COH) at $25 resistance may be a downside option, if and when.


Steelmakers Shaky


According to the Wall Street Journal, steelmakers around the world are gathering in Washington to determine how far to cut output before prices fall below theibreak-even point. Hot-rolled steel has plunged from $1000 a metric ton to $780 recently, nearing the break-even price of approximately $650.

At issue is whether there will be too much steel capacity due to a deep recession, which is what South Korea's Posco (PKX), the world's fourth-largest steelmaker, believes. But Lakshimi Mittal, CEO of ArcelorMittal (MT), said he thinks supply will be in line with demand and that long-term prospects for the industry remain strong with a projected 5% annual growth rate.

From the Bull Pen: Professor Smita Sadana mentioned on the Buzz yesterday to be on the lookout for a bounce in ArcelorMittal. With the stock trading above the $36 level in the pre-market, bulls attempting the upside can set a tight sell stop below that mark.

From the Bear Cave: Those bearish PKX can fade (read: sell) the gap if it can approach $80.

For more ideas in real time throughout the trading day, check out Minyanville's Buzz & Banter.


Quick Check Around the World

Asian trading closed with the Hang Seng -8.17%, Nikkei -9.38%, Sensex -2.48%, Taiwan -5.76% and Shanghai -3.04%.

Glancing towards Europe, we see the CAC +0.29%, DAX -0.70%, FTSE +0.79%

As of 8:20 a.m. EST, S&P Futures are trading +15 to 1022, and Nasdaq futures are +12 to 1348.


A Look At Commodities

Commodities are mixed. Crude oil is -0.62 to 89.44, gold is +29 to 911.60. Silver is +0.390 to 11.780, and copper is +0.55 to 255.00.

The dollar index is down -0.532 to 80.437.


On the Radar

Economics

10:35 Crude Inventories (10/4)

Click here for the full trading radar.

Get over the hump! Good luck!

Actionable ideas, instant analysis. Real-time from bell to bell.
Minyanville's Buzz & Banter - 14 day FREE trial


No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views 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 individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles 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. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE