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Two Ways: AIG Springs to Life


Strengthen your portfolio in good times and bad.

AIG's Wild Ride

It was a wild day in shares of AIG (AIG) yesterday. The stock surged over 60% amid speculation that the company could hand in a better-than-expected earnings report this Friday.

According to Dow Jones, analysts at Standard & Poor's believe AIG's balance sheet may have recovered enough to reach a positive book value while some at Motley Fool say its results could indicate corporate credit help has improved more than the market was expecting. Still, taken into context, AIG shares have lost 95% of their value in the past 12 months and almost 40% in the last 3.

See also Professor Branden Rife's explanation in Radian Group Gives False Hope to Banks.

From the Bull Pen: The financial ETF (XLF) traded beautifully last month, breaking a short term trendline on the 13th and giving bulls another opportunity at gapfill on the 22nd. But the sector is getting overbought. Bulls might want to take a little off and allow the stock to consolidate a little bit. Another stock to keep on the radar is State Street (STT), pulling back to $49-50 support, if and when.

From the Bear Cave: Bears can look elsewhere. Higher oil prices could spell more trouble for Tesoro (TSO). Those bearish can test the downside with a buy stop above $13.50.

Quick Check Around the World

Asian trading closed with the Hang Seng 1.97%, India -2.45%, Shanghai -2.11%, Nikkei 1.32%, and Taiwan 0.30%.

Across the pond, we see the FTSE 0.80%, CAC 0.74%, DAX 0.65%

As of 8.15 AM EST, S&P Futures are trading +4.00 to 1004.75 and Nasdaq futures are +0.75 to 1615.50.

A Look at Commodities

Over in commodities, crude oil is trading -0.43 to 71.54 while gold is -1.100 at 963.90 this morning. Silver is -0.800 to 14.68 and copper -5.600 to 275.60.

The dollar index is +0.4320 to 77.9700.

On the Radar


8:30 Initial Claims

Click here for the full trading radar.

Remember, traders. Take your profits. As long as your green by the end of the day, that's all that matters. Live to fight another day! Good luck!

The implosion of AIG has the world up in arms. Join Hoofy & Boo as they take you through what happened, from start to finish:

No positions in stocks mentioned.

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