The Markets
- Traders ignored the lower than expected 1Q GDP number of -6.1% and bid ’em up. Although the Fed, in their press release, did not alter already rock-bottom rates they did suggest that things seem to be easing. That was enough for yet another massive short-covering rally.
- I harvested some profits and put that money into TIP, the Treasury Inflation Protected Securities ETF. Here is what you need to know about TIPs and how to buy them directly from the Treasury, should you choose. Individual – TIPS: Rates & Terms
- I had bought a few shares of DNDN yesterday morning. This biotech company has been flirting with a developmental drug to lengthen the lives of men with advanced prostate cancer. The compound will not be simple to formulate. It must be mixed with harvested cells from the patient’s cancerous growth, incubated for a while, then IV’d into the patient. Average improvement to patient is about 4 1/2 more months, at least in the test. Shares were up from $6-ish a couple months ago to $22, based upon good reports. I bought a little for a day-trade, anticipating that the news of their trial, to be released at 2pm, would be favorable. For whatever reason, some say it was a rogue trade, the shares dropped 45% in a heartbeat and they stopped trading the stock. After the close the shares rebounded, now up 100% from the screwy trade. I waited for today and sold shortly after today’s opening for two points. A trader’s nightmare. This is no way to make a living.
- Ever wonder what the yield curve is and what to look for? Here is a concise explanation and what it means to you. http://snurl.com/h09ek I know, it gives me a headache, too.
- Guns. Smith & Wesson (SWHC) continues to motor as gun nuts buy everything in sight. I have heard that bullets are being bought by the pallet. Sales clerks at Wal-Mart are supposedly being tipped to let buyers know when new shipments come in.
- Comments re BP yesterday seem to be spot-on; in earlier discussions the company said they needed $60 oil to both pay the divi as well as maintain exploration levels. BP borrows to pay its dividend and struggles with growth, WSJ says. BP (BP) has a balancing act to maintain as it strives to pay a generous dividend and invest in its future growth, according to the Wall Street Journal’s “Heard on the Street”. It’s done a good job of cost cutting but the economic slowdown might prove to be its toughest issue, especially if inflation were to become a factor, and prices fall. Notwithstanding this, shares are up 1.5% today and still yield almost 8%. Stock is up over 10% in the month.
Sidebar
It is yet another very pleasant day here so am sneaking away for a bike ride.
Tonight is poker night and I expect to take no prisoners. We play from exactly 7pm to 10pm……for gawd’s sake, no later! The last game of the night is seven card stud, deuces wild, high/low, no peek. The player to the left of the dealer turns over a card, then a round of betting. The next guy must beat the first player, etc, etc. And remember it is high low so two ways to win. We used to play with a friend who has progressive Alzheimer’s. He couldn’t remember the game’s rules that were announced thirty seconds earlier so we took turns keeping our hands on us cards. The nicest man you have met. This is a stupid game, I know, but we all look forward to it. It is great fun and it is our last chance to get even! Wish me luck.
