Two Ways: Markets Bleed Red on Geithner's D-Day
Strengthen your portfolio in good times and bad.
What is known about the bailout is that the administration will rely on the private sector as well as federal funds in an effort to stem foreclosures and accurately price troubled assets. Banks will also face required stress tests in an effort to provide more transparency and instill confidence in the markets. The aim, Geithner said, will be to "restart the flow of credit, clean up and strengthen your banks, and provide critical aid for homeowners and small business."
Geithner added that the capital provided to banks would come with conditions so that "every dollar of assistance is used to generate a level of lending greater than what would have been possible in the absence of government support."
Market participants were disappointed yet again: No details were offered as to how the housing crisis, among other things, will be addressed. The administration will expand upon the plan in coming weeks, Geithner said.
S&P 500 closed -42 points, or -4.9% to 827.16. The Dow Industrials closed -381 points, or -4.62% to 7,888, and the Nasdaq Composite finished -66 points, or -4.2% to 1524.
From the Bull Pen: Today's session was a case of overly high of expectations and no delivery. Yet the trade remains to the upside. Bulls can consider the financial ETF (XLF), but remember to keep tight sell stops.
From the Bear Cave: As for short plays, crude oil had another rough close. Professor Adam Michael mentioned on the Buzz his sub $30 price target by spring. Bears attempting the downside can consider the ETF (USO) with a tight buy stop near $28-29.
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