This might become a roller coaster session today. We might jump above 4200 again taking some stops out there and pull back to 4140 area. Take care ! 
Short DAX at 7740
- Thread starter ASusilovic
- Start date
Corporate Credit Deterioration
North America
Ticker CLIP Name Doc Clause 5Y Today Daily Chg (bp) Weekly Chg (bp) 28 Day Chg (bp)
MER 5E919G Merrill Lynch & Co Inc MR 523 55 78 193
FIACRD 346B9J FIA Card Services Natl Assn MR 364 24 63 140
EP 2AB69R El Paso Corp XR 724 17 -12 20
WFC 9DDGBA Wells Fargo & Co MR 268 16 51 77
JPM 4C933G JPMorgan Chase & Co MR 199 13 29 54
Source : www.markit.com
North America
Ticker CLIP Name Doc Clause 5Y Today Daily Chg (bp) Weekly Chg (bp) 28 Day Chg (bp)
MER 5E919G Merrill Lynch & Co Inc MR 523 55 78 193
FIACRD 346B9J FIA Card Services Natl Assn MR 364 24 63 140
EP 2AB69R El Paso Corp XR 724 17 -12 20
WFC 9DDGBA Wells Fargo & Co MR 268 16 51 77
JPM 4C933G JPMorgan Chase & Co MR 199 13 29 54
Source : www.markit.com
Quote from ASusilovic:
This might become a roller coaster session today. We might jump above 4200 again taking some stops out there and pull back to 4140 area. Take care !
yeah, i wouldn't be surprised if we had one of those shows of resilience at the US open. if so, i'd be surprised if it held up.
Just another bear market rally
We expect the market to fade this rally, but think it unlikely that we will break the February lows, before staging a more sustained recovery supported by fundamental improvements in activity and banksâ balance sheets later in the year. Longer-term, we think that attractive valuation levels should lead to strong real returns for shareholders.
Recent rally has paid for risk/reward improvement
We remain very focused on data and policy developments, but believe the recent rally has paid for the near-term risk/reward improvement. Catalysts that have the potential to drive the market down near-term: next week, we will get the ISM and March unemployment report, news surrounding the G20 and banksâ stress tests, and first quarter earnings.
"Inflection Detection" update
We have updated our four signposts that we are watching to indicate a sustainable turn:
(1) valuation looks attractive, even after the rally;
(2) economic data has turned slightly better, but one month isnât a trend. We would rather be late and have the trough confirmed as we think the risks of being early are significant;
(3) given the amount of data that will come through over the next few weeks, we worry how the market will interpret it, especially after the rally;
(4) the credit market has tightened, especially in IG, but economic and credit concerns may drive credit wider.
We expect the market to fade this rally, but think it unlikely that we will break the February lows, before staging a more sustained recovery supported by fundamental improvements in activity and banksâ balance sheets later in the year. Longer-term, we think that attractive valuation levels should lead to strong real returns for shareholders.
Recent rally has paid for risk/reward improvement
We remain very focused on data and policy developments, but believe the recent rally has paid for the near-term risk/reward improvement. Catalysts that have the potential to drive the market down near-term: next week, we will get the ISM and March unemployment report, news surrounding the G20 and banksâ stress tests, and first quarter earnings.
"Inflection Detection" update
We have updated our four signposts that we are watching to indicate a sustainable turn:
(1) valuation looks attractive, even after the rally;
(2) economic data has turned slightly better, but one month isnât a trend. We would rather be late and have the trough confirmed as we think the risks of being early are significant;
(3) given the amount of data that will come through over the next few weeks, we worry how the market will interpret it, especially after the rally;
(4) the credit market has tightened, especially in IG, but economic and credit concerns may drive credit wider.
Closing FDAX 4016.00. Maybe better short opportunity developping...
âWe cannot see large upside for the S&P 500 above the 825- 850 level,â Morgan Stanley U.S. equity strategist Jason Todd wrote in a report yesterday. âIn the rush to buy a cyclical recovery, it seems earnings or valuation no longer matters. We would be comfortable with this view if the earnings trough was closer, but it is not.â
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Todd said investors should consider âcollaringâ their positions by selling call options and buying puts on the S&P 500, thereby protecting against declines and profiting from the forecast that the gauge wonât advance much further.
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Todd said investors should consider âcollaringâ their positions by selling call options and buying puts on the S&P 500, thereby protecting against declines and profiting from the forecast that the gauge wonât advance much further.
Morgan Stanley Chief Executive Officer John Mack told employees at Morgan Stanley and Citigroup Inc.âs Smith Barney unit that 2009 will be a âdifficult yearâ and that profitability is nowhere near to the bankâs targets.
This year, âeven though flows of business are good, is nowhere near what we need on a long-term basis,â Mack, 64, said on an internal conference call yesterday with the brokers. It âwill be a difficult year for all of our firms, mainly because of some of the legacy positions that we continue to have, and they drag on all of us,â he said.
Seems, Morgan Stanley is on the short side of the markets...
This year, âeven though flows of business are good, is nowhere near what we need on a long-term basis,â Mack, 64, said on an internal conference call yesterday with the brokers. It âwill be a difficult year for all of our firms, mainly because of some of the legacy positions that we continue to have, and they drag on all of us,â he said.
Seems, Morgan Stanley is on the short side of the markets...
240 min SMA 4133.00. Short FDAX.