Friday, March 14, 2008

Markets down 2% on Bear Stearn's liquidity CRUNCH....

Markets are taking on the chin..thanks to Bear Stearn's liquidity CRUNCH.....

CPI came in better than expected and markets reversed the negative tape.....until Bear reversed it again to down 300 on Dow....

Bear Stearns liquidity issue is the result of prolonged credit crunch which is coming home to roost.......

BSC represents the last stage of credit mess......

First it was liquidation of bad assets......which was NOT enough...then Margin calls...which was NOT enough...NOW the final curtain.....

This stage of credit mess WILL PASS......

Because Fed IS working closely with financial system to facilitate & resolve all issues...no matter what it takes !!!!!

In my portfolio :

Bought TOL @ open cost $20.60

TOL down 46 cents..i am down 76 cents

CSIQ UP 14 cents

CMED UP 93 cents

NVDA down $1.02

RIMM down $2.09

@11.45 AM the following are green :

LDK (UP $3.32 2nd day in a row on heavier volume than yesterday ..already 4.6 million shares),
EGO,BIDU,DUG,POT,AUY,ABX,AMZN,MOS.

BLOG does NOT give buy or sell.

Saleem

10 comments:

Unknown said...

Hi Saleem,

When I need to post, it comes through!

This is for Minaccess and it may be of interest to others. Would appreciate your comments too Saleem.
It seems to me something here is mispriced...

I bought FCSX and it is trading below 36 now. The April 50 puts are trading at one dollar, or at least that is the bid. There are two contracts with that strike price, and one is much cheaper than the other. If you buy the stock and buy the put, you lock in a significant gain ($3 per share) Perhaps something has changed since I wrote this or ???

Please comment Saleem and Minaccess. Do you see this as well.

B

Unknown said...

Sorry, I meant the April 40 puts and they still haven't moved in price. Now FCSX is at 35.4 or so. I must be getting something wrong here?

In any case, I've got 1300 of each.

B

Stocks100 said...

Hi Garrett,

I do not follow FCSX or options.

Saleem

Anonymous said...

Saleem,
Take a look at HL as a defensive play. Recent breakout on good volume. Good fundies.

Stocks100 said...

Hi Painterman,

Thanks for HL focus.....I will do dd on that.

Saleem

Claude said...

Wow, I did not expect LDK to go back up that way. My 21.70$ entry price was a good idea. Up close 30%. Wonder if I should lock my profits. It was a long term play for me. The only sad thing is that my position was quite small (300 shares) Hey, in this market, I should be happy and not complain!

Stocks100 said...

Hi Frogvest,

It IS good to be lucky in this crazy market.

Locking profit MAY not be a bad idea.

Saleem

minaccess said...

Hi Garrett. I don't follow options either. I sold FCSX today when my loss hit 5%. I bought at 200dma and put in a tight stop loss. I can't see why it is dropping so hard today other than a bad market and that it is a financial stock.

Unknown said...

Hi Minaccess,

Sorry to hear about your loss. My average price on FCSX is 38 and that's why I looked to see what it would cost to insure the shares with options. I was expecting huge premiums but it wasn't the case.

I have NEVER seen options so mispriced in my life.
Right now I'm on the phone with Fidelity and they too cannot understand what is going on. They told me the prices are correct but I'm on hold as they check further.

Beatrice

Troy House said...

Check this out:
2008: The Year of Solar
March 04, 2008

By Jim Woods and Paul Carton

No matter where you look, alternative energy is the topic du jour. Driven by the economics of record-high crude oil, the spotlight is shifting to non-traditional energy sources, particularly solar.

http://changewave.com/freecontent/2008/02/alliance-2008-year-of-solar-02-19-08.html