The Markets
- Equity futures are off a bit after yesterday’s historic blow-out. Oil is giving up some gains, as well. Gold, which demonstrates seemingly quixotic pricing, is down hard.
- Should we open lower I would like to see the S&P hold 813. The close at 822 must be considered to be ahead of itself and at least some profit-taking should not surprise in an overbought market.
- Today’s Congressional testimony by both Bernanke and Geithner could be a spark either way. Geithner is, finally, getting some help as Obama nominate two Assistant Secretaries to Treasury. After the severe vetting process one wonders why anyone would put their name in the ring.
- Positioning is beginning prior to G-20 meetings. China is thinking the dollar should be replaced by another, new, currency. Two weeks ago, at the Premier’s annual press conference he voiced support for their continued purchases of our debt. However, their call for a new monetary order may upset things for a while. In addition, Russia has recommended the IMF consider issuing a new international currency. Clearly, nothing will happen, if at all, for years with regard to replacing the dollar as the world’s currency. But this is a shot across the bow.
- Walgreen announced OK earnings but warned that their business is being turned upside down by fickle, and parsimonious, consumers. Prescriptions are down as pills are being split. Yeah, cut in two to save money. This sounds more like a third-world action, not the US.
- In the investment account I added a bit of AT&T. Over the last two weeks it has climbed from $22 to almost $27. Like many I search for dividend replacement. So many divi’s have been slashed that T”s looks too tempting to pass on. I also added to The Anderson’s (ANDE). This is a hybrid company: retail, ethanol, and commodity storage. It was a high flyer last year as ethanol captured every one’s imagination. Like all plays in that sector ANDE collapsed. Ethanol is under a bit of a cloud in Obama’s administration so I walk gingerly here. Added a small amount to Freeport-McMoran Copper and Gold preferred (FCXprM), After rising recently, this yields 10% but the shares will be called in 2010.
- In the trading account I was in and out of all sorts of crap. BGU is a turbo charged large cap ETF. It was up over 23% (I didn’t get all of that!) yesterday as the market rose about 7%. AIG traded like water and I kept it over night and am scared to death.
Am in meetings away from the desk this afternoon so a post later than usual will have to suffice. Here is hoping you have a wonderful Tuesday!
