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Two Ways: Signs of Strength from AIG


Strengthen your portfolio in good times and bad.

Loud Deafening Noises from AIG

Shares of American International Group (AIG) exploded yesterday. The move may be attributed to comments by new Chief Executive Officer Robert Benmosche. In a sign of strength, Benmosche said he's willing to wait as long as three years to offer stakes in two multi-billion dollar foreign units that the insurance giant had previously been racing to spin off, according to The Wall Street Journal. "Once the market gives us a price that I think is fair," he said, "we can go forward."

For more on yesterday's action see Steve Smith's AIG Rises from Ashes and Burns Competition.

From the Bull Pen: The message from the action of AIG shares yesterday is that stocks are still likely to move higher. Consider the breakout in Dryships (DRYS). Follow-through strength today will give an increased bullish picture. Those playing it can set a sell stop 2% sell stop below yesterday's close.

From the Bear Cave: Notice the astounding flop in the dollar index yesterday. Watch for the bearish dollar fund (UDN) to make new highs. Dollar bears can continue to use this vehicle with a sell stop below $27. Also consider the euro ETF (FXE). A sell stop can be set below yesterday's low (near $142).

Quick Check Around the World

Asian trading closed with the Nikkei 0.57%, India 0.90%, Hang Seng -0.71%, Shanghai -2.91%, and Taiwan 1.78%.

Across the pond, we see the FTSE 1.01%, CAC 1.44%, DAX 1.38%

As of 8:20 a.m. EST, S&P Futures are trading +4.75 to 1034.00 and Nasdaq futures are +6.75 to 1645.75.

A Look at Commodities

Over in commodities, crude oil is trading +0.66 to 73.15 while gold is +6.70 at 954.00 this morning. Silver is +0.285 to 14.51 and copper +8.850 to 293.70.

The dollar index is -0.0150 to 78.0400.

On the Radar


08:30 Personal Income: 0.1% cons, -1.3% prior.
08:30 Personal Spending: 0.2% cons, 0.4% prior.
8:30 PCE Core: 0.1% cons, 0.2% prior.
9:55 Michigan Sentiment-Rev: 64.8 cons, 63.2 prior

Almost there! Good luck, Minyans and have an awesome weekend!

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

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No positions in stocks mentioned.

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