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| 2009-06-26 01:07 |
MARKET WAITING ON WASHINGTON
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NEW YORK, NY The market is spinning its wheels as confusion continues to rule the day. On one hand, we hear CEO
after CEO say that things are getting better though the data just isn't painting the same picture. Granted, the data is backward looking but trends
have forward-looking implications. That said, the market has come far on hype or hope (you decide) and it's more than apparent the market needs a
boost. Right now, it feels like investors are waiting for Godot. There is a certain amount of satisfaction with the market being as high as it is
relative to year earlier lows. And while smiles haven't turned to frowns there are curious grimaces on the faces of those looking for the next spark.
In the meantime, the shorts are reloading and insiders have begun to sell enough shares to raise yellow flags
Michigan Consumer Sentiment
came in a hair better than expected but the slip in expectations mitigated the overall results. If people believe that things aren't going to get
better in the next six-months it means they'll hoard cash. That's the message we got today from the income and consumption numbers. People got more
cash in their pockets but spent it in a deliberate manner. People are going to be cautious but they might be spending enough to support the notion of
"green shoots." Yet, the fact of the matter is that it's going to take more...much more, to get over the hump. The market is supposed to be able to
predict things before they happen so if last month's employment number wasn't a fluke the market should get a little head of steam into the next jobs
report.
I think that stocks stay in a
holding pattern until news from Capitol Hill on Cap and Trade breaks, which is now rumored to have enough votes. It's going to be devastating to so
many people as this has nothing to do with cleaning up the environment and everything to do with making corporate America weaker and Americans poorer.
This was a major news week and many stories got lost in the sauce. For a moment, there was outrage at Citigroup (C) raising the pay of rank
and file employees by as much as 50.0%. I realize that the bank is between a rock and hard place but increases in pay should be based on merit.
> Earnings estimates for Citigroup keep dropping for FY09 and FY10
> Citi mortgage saw their correspondence divisions get slammed for
losing paperwork on loans that cover employment and income verification.
> Today, Japanese authorities closed Citigroup's retail banking division
for one month because there has been a weak effort to address money laundering.
As millions of Americans suffer from joblessness it's the
wrong time to jack up pay where incompetence still rules.
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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. |
