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VIDEOTwo Ways To Play: Gloom, Doom From Davos
Strengthen your portfolio in good times and bad.
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US Banks Insolvent?
New York University Professor Nouriel Roubini says the majority of US banks are insolvent and must be nationalized. Speaking in a Bloomberg Television interview in Davos, Switzerland, Roubini suggested that the current system of self-regulation has been a failure and the entire system must be changed.
Failure to do so, he cautioned, would result in "another one of these massive asset and credit and leverage bubbles, and it’s going to be disastrous.” The professor maintains his prediction that losses in the US will more than triple to $3.6 trillion.
For additional perspective, see Currency Destruction by Mr. Practical. 
From the Bull Pen: The global outlook is a mess. But from a trader's standpoint, many opportunities exist. One can consider MasterCard (MA) for an upside play. Is the stock headed to $140? One strategy could be to enter on today’s weakness with a 2-point sell stop below. 
From the Bear Cave: Bears can consider Caterpillar (CAT) as it creeps back to $35. One can initiate a downside position if and when it reaches that level.
Quick Check Around the World
Asian trading closed with the Hang Seng 4.58%, Nikkei 1.79%, Sensex -0.23%, and Taiwan 0.13%.
Glancing towards Europe, we see the CAC -1.37%, DAX -1.18%, FTSE -2.01%
As of 8:05 a.m. EST, S&P futures are trading -8 to 862.00, and Nasdaq futures are -7 to 1223.00.
A Look At Commodities
Crude oil is trading -0.90 to 41.26. Gold is -9.8 to 878.40. Silver is -0.22 to 11.740, and copper -6.30 to 143.30.
The dollar index is -0.0750 to 85.1350.
On the Radar
Economics
08:30 Durable Goods Order -2.0%
08:30 Initial Jobless Claims
08:30 Continuing Claims
10:00 New Home Sales 400k
Click here for the full trading radar.
Good luck today!
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