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: Stress Test Parameters Come to Light

By

Strengthen your portfolio in good times and bad.

PrintPRINT
Stress test details were released today, which helped pave the way for a rally. According to Reuters, the 19 largest US banks will have to hold substantial amounts of capital above regulatory requirements in order to weather a potential worsening of the US economy.

The Federal Reserve outlined the parameters in a statement on its website today, and said the stress tests were done to evaluate losses and revenues, and to determine if banks had enough reserves to continue lending during more difficult environments.

"It is important to recognize that the assessment is a 'what if' exercise intended to help supervisors gauge the extent of additional capital needs across a range of potential economic outcomes," said the Fed.

The actual results will be posted on May 4.

See Professor Adam Warner's Financials Get Ready to Reverse Course.

From the Bull Pen: Bulls can look to Mosaic (MOS). Professor Ryan Krueger has been spot on with the agriculture sector, and the stock appears to have broken its downtrend. A sell stop can be set below the day's low.

From the Bear Cave: Minyan James Kostohryz pointed out on the Buzz the inadequacy of the Fed's release. The heavy action in the financials also seemed very suspicious today. Consider a downside play in the Financial ETF (XLF); a buy stop can be set above recent highs, near $11.30.

Enjoy the weekend, Minyans!



In memory of our fallen friend and trusted colleague, Bennet Sedacca, 100% of the donations made to the RP Foundation through April will be channeled to philanthropic endeavors consistent with the RP mission, working closely with the Sedacca clan in the distribution of those funds. We thank you kindly for your support as we strive to effect positive change in the lives of children.

< Previous
  • 1
Next >
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