Two Ways to Play: California May Ask for Bailout
Strengthen your portfolio in good times and bad.
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
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!
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