Two Ways: AIG on Borrowed Money, Time
Strengthen your portfolio in good times and bad.
AIG Gets Bigger Allowance
The top story this morning: AIG (AIG) is getting another $30 billion from the US government on top of the $150 billion the company received last year. In a joint statement, the Treasury Department and Federal Reserve said the rescue is necessary "given the systemic risk AIG continues to pose and the fragility of [the] market today."
The Treasury is also exchanging its $40 billion in preferred shares for something that will more closely resemble common stock, thereby improving the quality of AIG's equity and leverage. The US government will now have an equity ownership in AIG of approximately 77.9%
For more, see Professor Kevin Depew's Is This A Low?
From the Bull Pen: More good money chasing bad is bullish for gold. Bulls can look to the Gold ETF (GLD). Sell stops can be set below $90, an important technical level.
From the Bear Cave: Bears can still consider a downside play in the dollar using the Inverse ETF (UDN). One option is to take a more passive approach and buy the stock near $24 support. If and when.
Quick Check Around the World
Asian trading closed with the Hang Seng -3.86%, Nikkei -3.81%, India -3.20%, Taiwan -2.88% and Shanghai 0.51%.
Glancing towards Europe, we see the CAC -3.17%, DAX -2.74%, FTSE -3.91%
As of 8:00 AM EST, S&P Futures are trading -17 to 717, and Nasdaq futures are -21 to 1096.
A Look At Commodities
Crude oil is trading -2.41 to 42.35. Gold is +5.50 to 948.00. Silver is +0.15 to 13.100, and copper -2.10 to 150.50.
The dollar index is +0.8100 to 88.9600.
On the Radar
08:30 Personal Income -0.3%
08:30 Personal Spending 0.3%
08:30 PCE Deflator
08:30 PCE Core MoM & YoY (0.1%, 1.6%)
10:00 ISM Manufaturing 34.0
10:00 ISM Prices Paid 35.5
10:00 Construction Spending MoM
Click here for the full trading radar.
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