Minyanville's Before The Bell: UBS Warns and the Crude 'Tude
UBS warns of further write-downs and oil surges past $93 a barrel. Futures point higher!
The WSJ reports UBS (UBS) said its third quarter loss will be in-line with estimates given earlier this month as the bank prepares to report results tomorrow. Losses will be between $515.5- 687.3 mln. Although UBS warned investors of further write-downs due to mortgage-related securities, the company stated the current quarter has started positively. Read Minyan Peter's The Ripple Effect Of Collateralized Debt Downgrades.
The Bull Pen: Those believing the worst is over for UBS may set sell-stops below $49.79, the low of this summer's credit crunch.
The Bear Cave: Todd recently noted the disconnect between perception and reality in financials. Traders considering shorting Merrill Lynch (MER) should note the heavy resistance in the $70-$72 as areas for buy-stops.
The Crude 'Tude
Bloomberg reports crude oil climbed above $93 a barrel for the first time amid rising tensions in the Middle East and halts in Mexican oil production. Mexico, the third-largest supplier to the U.S., halted production of about 600,000 barrels a day as a storm passed through the Gulf of Mexico. Also contributing to the increase in prices, the dollar dropped to $1.4426 per euro, the weakest level since that currency was introduced in 1999. Read Professor Sally Limantour's An Update on Energy, Food, and Inflation.
The Bull Pen: Professor Krueger mentioned the benefits of higher prices with shipping stocks. Energy bulls may look to Dryships (DRYS) with recent support near $115. Trades below may act as a sell-stop.
The Bear Cave: Todd has noted the recent inability of the drillers (OSX) to rally with the price of crude. Traders may look to short Tidewater (TDW) with buy-stops above $63 or Smith International (SII), which we highlighted Friday, with a buy-stop above $68
A Quick Check Around the World
Asian markets ended positive with the Hang Seng +3.89%, Nikkei +1.17%, Sensex +3.82, Taiwan +1.85%, and Shanghai up +2.83%.
A quick check on Europe finds the CAC +0.61%, DAX +0.64%, and FTSE +1.85%. As of 8:30 AM EST, S&P futures are trading up +5.0 points, and Nasdaq future are up +13.75 points.
A Look At Commodities
Crude is currently at 92.77, up +0.91. Metals are stronger. Gold is up +9.9 to 797.40, Silver is up +0.23 to 14.510, and copper is up +0.04 to 3.57. The dollar index is down -0.17 to 76.85.
On the Radar
There are no economic events scheduled today.
Click here for Minyanville's full Trading Radar.
Happy Monday, Minyans! Good luck!
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