|
 |
|
|
 |
 Securities Operations Forum has a special arrangement with Wall Street Strategies to provide access to this daily market commentary for free to SOF users. WSS provides independent investment advice and is not affiliated with any broker or underwriter. To receive a free personal email with the daily commentary, subscribe here.
|
 |
 |
 |
 |
| 2009-06-16 01:49 |
BIAS SHIFTS FROM TRUE NORTH
|
|
The market continues to struggle. There was the kind of news today that invigorated bulls all spring when housing starts and permits
soared. But, the reaction to mixed guidance from Best Buy (BBY) underscores the desire among investors to have solid news to move the needle from
here.
Industrial production came in at -1.1% reading and capacity utilization edged down to a reading of 68.3. Estimates for these data
releases were -1.0% and 68.4, respectively. This was the lowest utilization reading since the series began in 1968.
This middle of the road diplomacy may work with nations looking for increased aid
from America but it's not working well with two of the three members of the "axis of evil." I understand President Obama is loath to pick up on
anything Bush did or said (except wild spending) but the olive branch may have to give way to the tree branch (which is what I had to endure on
occasion) or maybe a big stick. At some point America has to be outraged. At some point, we have to push back against the knuckleheads that are the
leaders of Iran and North Korea.
America may not want to be seen as interfering but the signs of dissidents are written in English...it's
clear they are directed at the white knight. It's clear that a large swath of the Iranian public wants the president and the cavalry to come riding to
the rescue. I'm no diplomat but what's happening in Iran could play out in different ways around the world and in America. People expect incredible
stuff from the White House and in some cases they will confuse hope with real initiative.
I think that U.S. cities could see unrest next
summer if joblessness persists, particularly among African Americans. Many will still see the president in a positive light, and if they go to the
streets somehow there will be another scapegoat...maybe George Bush. The point I'm trying to make now is that turning the cheek or placating really
bad people only emboldens them to move onto even more outrageous behavior. This is a golden opportunity in Iran to play it too close to the vest and
it could be a monumental mistake. I know we don't want to force democracy on other nations but can we openly root.
Thoughts from WSS Research
Desk
David Silver
* Taxpayers you can sleep easy tonight (or at least easier) knowing that everyone who asks for government help will
not receive it. Last week the auto parts supplier industry asked the government for another $8 - $10 billion of aid additional aid (already got $5
billion a few months back). However, in a first for the administration, the auto task force said "No" to the industry. Is a wave of bankruptcies next?
Probably not, but that is what the industry has indicated would be the next step.
|   
| Delivery, and or timely delivery of Internet mail is not guaranteed. Wall Street Strategies
therefore recommends that you do not rely on email as your sole method of communication with us. We recommend using your company email address or one
issued to you by your Internet Service Provider. Free web-based email accounts like Hotmail and Yahoo are not advised as they are subject to quotas,
filters and frequent delays.
Disclaimer: All investment entails inherent risk. Wall Street Strategies' research seeks to assist investors in
determining when to buy and when to sell to attempt to maximize profits or minimize losses. All final investment decisions are yours and as a result
you could make or lose money. Wall Street Strategies, its employees and/or its affiliates and family members may from time to time take positions in
the open market or otherwise with respect to the securities discussed. Wall Street Strategies, its employees and/or affiliates do not have stock
ownership equal to or greater than 1% of the outstanding stock of the covered company nor does any employee of Wall Street Strategies sit on the Board
of Directors of any covered company. Wall Street Strategies is not a broker/dealer, and the firm does not underwrite securities, manage assets or
perform investment banking activities. The statements made herein include information obtained from sources believed to be reliable, but no
independent verification has been made and we do not guarantee its accuracy or completeness. The statements made herein contain general information
and do not constitute an offer to buy or sell any security.
61 BROADWAY SUITE 1425, NEW YORK, NY 10006 Tel: 212-514-9500 Fax:
212-514-9582
|
 |
Disclaimer: Securities Operations Forum is providing this research to assist investors in determining when to buy and when to sell. All investment decisions are yours and as a result you could make or lose money. Securities Operations Forum, its employees and/or its affiliates and family members may from time to time take positions in the open market or otherwise with respect to the securities discussed, but not have stock ownership equal to or greater than 1% of the outstanding stock of the covered company nor does any employee of Securities Operations Forum sit on the Board of Directors of any covered company. The statements made herein include information obtained from sources believed to be reliable, but no independent verification has been made and we do not guarantee its accuracy or completeness. The statements made herein contain general information and do not constitute an offer to buy or sell any security. |
