Minyanville's Market Recap: Sentinel, Financials, Sell-Off!
Brewing Sentinel Situation, Financials, Recap the Trading day!
The day began with the European Central bank injecting another $10.5 bln as ECB President Jean-Claude Trichet pleaded with investors to "keep their composure" as the markets would return to some sense of normalcy.
Later on, news broke of another fund, Sentinel Management Group, a firm that manages $1.6 bln in short-term cash for commodity trading firms and hedge funds, halting redemptions. The news added more anxiety to investors causing a sell-off in the financials even after all of the efforts of central banks since last week. Read more of the implications of the developing Sentinel situation in Professor Depew's Is This A Run On The Bank? What Sentinel Management's Redemption Halt Really Means. Just as important, please have a look at Why This Time is Different and Professor Reamer's Hedge Funds Out of Excuses? before jumping into financials.
Adding to the negative sentiment were UBS, Wal-Mart (WMT), and Home Depot (HD) all warning of challenging environments and issuing downside guidance. Minyanville had a number of warnings as well. Read Professor Cooper's The Market's Persistent Uncertainty for great insight into the "turbulence" that many of these "fallen angels" have encountered. Toddo also mentioned these warning signs in his article Answers I Really Wanna Know.
These certainly may be turbulent times, but it can also be one of opportunity. Reviewing through the Ten Trading Commandments should part of a trader's daily routine as it provides a guide through this brewing storm. Also have a look at Toddo's Blinded By The Light for some insight into his own trading strategies.
Below is just some of the idea flow on today's Buzz and Banter. Please note that stocks may appear on both bullish and bearish categories due to long and short term trades by our many Minyanville Professors.
Some Bullish trade or investment ideas: FCX, CBAK, WYNN, LVS, AMGN, DNA, HON, EMC, TLAB, GS, SUNW, CTXS, CSCO, BX, GLW
Some Bearish trade or investment ideas: IEF, SPU, GS, C, BAC, SPX, SPU, AMZN, YHOO, BA, FIG, BZH, FNM, FRE, LEH, GS, AAPL, UA, WMT, HD, VLO, LIZ, FO, GRMN, DECK, CMG, PCU
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