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Two Ways: Mo' Banking Blues

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Strengthen your portfolio in good times and bad.

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Stressed Out Banks

Shares of Bank of America (BAC) and Citigroup (C) are down sharply in pre-market trading after a report said, based on early results of the government stress test, that banks may need to raise more capital. According to the Wall Street Journal, the companies could require billions, but executives at both are balking at the results and meeting with regulators to dispute the findings. Government officials have been holding general meetings with top bankers over the past few days, and said discussions would continue this week. They also added that banks directed to add more capital shouldn't be viewed as insolvent.

Shares of Bank of America were down 11% in pre-market trading, while Citi was lower by 8%. See Professor Kevin Depew's Five Things: Bank Stress Tests Reveal More About Our Obsessions Than Banks.

From the Bull Pen: Despite the weakness in the overall equity markets, bulls can look to a play Professor Adam Warner mentioned yesterday on the Buzz & Banter: Mohawk Industries (MHK). One can fade (read: buy) the weakness into $44-$42; a sell stop can be set below that level.

From the Bear Cave: Bears can consider a downside play in the iShares Dow Jones Transportation ETF (IYT). A close below $51.50, and we could see increased selling pressure.

Quick Check Around the World

Asian trading closed with the Hang Seng -1.92%, Nikkei -2.67%, India -3.25%, Shanghai -0.16% and Taiwan -1.%.

Glancing towards Europe, we see the CAC -2.28%, DAX -2.63%, FTSE -2.11%

As of 8:05 AM EST, S&P Futures are trading -13 to 843.00, and Nasdaq futures are -16 to 1357.00.

A Look at Commodities

Over in commodities, crude oil is trading -0.98 to 49.16 while gold is -9.4 at 898.80 this morning. Silver is -0.410 to 12.545 and copper -6.40 to 192.25.

The dollar index is +0.1350 to 86.0550.

On the Radar

Economics

09:00 Consumer Confidence 28.8
10:00 S&P/Case Shiller Home Price Index -18.8%

Click here to see the full trading radar.

You stay classy, San Diego! Good luck today!



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.

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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.

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