Before The Bell: Goldman Smells Danger, Crude Oil Correction, Futures Flat
Goldman Sachs smells of danger in the emerging markets. Crude Oil falls over a dollar. Futures are flat.
The Telegraph reports Goldman Sachs (GS) has begun to cut exposure to emerging markets due to fears that global credit market turmoil could trigger a painful correction in the markets of Latin America, parts of Asia, and Eastern Europe. The bank has closed its positions on Brazilian and Mexican stocks although it said it remains bullish on the emerging markets in the long run. For more on the credit markets, read Toddo's Little Miss Sunshine. Also read Professor Depew's Five Things You Need To Know.
From the Bull Pen: Those bullish on the emerging markets may find appeal in Freeport McMoRan (FCX), a company that benefits directly from high emerging market demand for copper. Sell-stops may be placed below $106.59 (50-DMA).
From the Bear Cave: Bears may see a play in the iShares China 25 index (FXI), particularly if we see a rally back to $195 (with stops set above $200).
Crude Oil Correction
The AP reports oil fell more than $1 to below $95 after Saudi Arabia's oil minister said that OPEC would discuss boosting oil output at an upcoming meeting to cool soaring oil prices. Oil prices have recently surged to almost $100 per barrel amid tensions in the Middle East, weak supplies, and the falling dollar. Saudi Arabia is said to be pushing for an extra 500,000 barrels-a-day hike in output by OPEC, or 1.8%. Last week, Toddo mentioned the dollar slide in Answers I Really Wanna Know. Also read Professor Shedlock's What's Really On the Fed's Mind?
From the Bull Pen: Oil bulls may look to Anadarko Petroleum (APC) as long as it holds its trend-line above $57.
From the Bear Cave: Those believing oil will continue to correct may play the downside with the Oil ETF (USO); buy-stops above the 52-wk high, $76.32.
Click on Minyanville's Stocks To Watch for more company-specific ideas.
Quick Check Around the World
Asian trading closed with the Hang Seng -3.88%, Nikkei -2.48%, Sensex -1.69%, Taiwan -3.35% and Shanghai -2.40%.
A quick check towards Europe is mixed with the CAC -0.25%, DAX -0.33%, FTSE +0.23%, ATX +0.37%, Swiss Mkt. -0.10% and Stockholm -0.01%. %.
A Look At Commodities
Crude oil is lower by –1.41 to 94.91. Gold is weaker by –19.9 to 814.80. Silver is down as well –0.47 to 15.070 and copper is down –10.30 to 304.25.
As of 8:30 AM EST, S&P futures are up by +0.10 points and Nasdaq futures are down by –3.00 points.
On the Radar
There are no economic events scheduled for today.
Click here for Minyanville's full Trading Radar.
Happy Monday, Minyans! Have a great day!
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.
Daily Recap Newsletter