Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Ways to Play: California May Ask for Bailout

By

Strengthen your portfolio in good times and bad.

PrintPRINT
Californication

Specific details aren't out yet but California Governor Arnold Schwarzenegger may ask President Barack Obama for a bailout to the tune of $8 billion.

According to Bloomberg, the Terminator has worked with lawmakers from February through July to close a record $60 billion gap with a $32 billion cut in spending, $12.5 billion of temporary tax eases, $8 billion in federal stimulus, and more than $6 billion of other one-time fixes.

But now, the state wants more permanent solutions, such as minimum expenditures on programs like indigent health care.

For more on this, see Minyan Mark Majka's Coming in 2010: Bailouts for States.

From the Bull Pen: Considering the credit scares from Greece, Dubai, as well as the rally in the USD, bears have had every reason to push down stocks. But they've simply failed. At the minimum, the S&P 500 Depository receipts (SPY) should see higher prices. A sell stop can be set 2% below entry.

From the Bear Cave: More bailouts for the United States means more downside for the USD. The correction in the dollar bearish fund (UDN) might have provided some with a good opportunity for the new year. A sell stop can be set below the recent low (27.40).

For more ways to play and other trading ideas from more than 30 top market pros, take a free trial to our Buzz & Banter.

A Quick Check Around the World

Asian trading closed with the Nikkei 1.53%, India 0.57%, Hang Seng 0.88%, Shanghai 2.59%, and Taiwan 0.79%.

Across the pond, we see the FTSE 0.29%, CAC 0.07%, and DAX 0.20%

As of 8:10 AM EST, S&P Futures are trading +2.50 to 1118.75. Nasdaq futures are +3.50 to 1855.75.

A Look at Commodities

Over in commodities, crude oil is -0.32 to 76.35 while gold is +7.80 to 1101.90 this morning. Silver is +0.10 to 17.290 and copper +0.0225 to 3.2260.

The dollar Index is -0.285 to 77.945.

On the Radar

Economics

08:30 Initial Claims
08:30 Continuing Claims
10:00 Durable Goods 0.4% cons.
10:00 Durable Goods ex. Auto 1.0% cons.

Have a Merry Christmas and Happy Holidays!
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.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE