This Seasoned Bull Is Still Hornier Than Larry King Overleveraged On Viagra
- Thread starter shortie
- Start date
no, the reason the market didn't react much is because the GS investigation is a non-event for the broader economy and equities market. so what if they committed fraud? how does it affect other company earnings and consumers and the housing market if GS gets fined $20 million or 50 or even 100?
what if other investment banks are charged with fraud? what if the fine for GS 1B? BAC just reported that they made billions trading. what if BAC is next to be charged with fraud? financials are a decent chunk of S&P, so what happens to them matters to the market.
XLF dropped 4% today, so GS news is clearly not a non-event.
GS reaction to this obviously shows how serious this is.
The Wall Street Journal:
http://online.wsj.com/article/BT-CO-20100416-714744.html?mod=WSJ_latestheadlines
* APRIL 16, 2010, 9:17 P.M. ET
Bank: Merrill Committed Same Fraud As SEC Claims Goldman Did
By Chad Bray
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Merrill Lynch & Co. engaged in the "same type of fraudulent conduct" that Goldman Sachs Group Inc. (GS) was accused of committing by the U.S. Securities & Exchange Commission in a lawsuit on Friday, a Dutch bank said Friday.
In a letter filed in New York State Supreme Court in Manhattan on Friday, lawyers for Cooperatieve Centrale Raiffeisen-Boerenleenbank BA, or Rabobank, said Merrill Lynch committed a similar fraud in the structuring of a $1.5 billion collateralized debt obligation, known as Norma CDO Ltd. .....
http://online.wsj.com/article/BT-CO-20100416-714744.html?mod=WSJ_latestheadlines
* APRIL 16, 2010, 9:17 P.M. ET
Bank: Merrill Committed Same Fraud As SEC Claims Goldman Did
By Chad Bray
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Merrill Lynch & Co. engaged in the "same type of fraudulent conduct" that Goldman Sachs Group Inc. (GS) was accused of committing by the U.S. Securities & Exchange Commission in a lawsuit on Friday, a Dutch bank said Friday.
In a letter filed in New York State Supreme Court in Manhattan on Friday, lawyers for Cooperatieve Centrale Raiffeisen-Boerenleenbank BA, or Rabobank, said Merrill Lynch committed a similar fraud in the structuring of a $1.5 billion collateralized debt obligation, known as Norma CDO Ltd. .....
Here come the lawyer sharks. This will last for years, but BAC will be untouched. Nevertheless, the lawyers are foaming at da mouths to get some litigation....and the SEC started it all. Glad the SEC admitted they KNEW about STANDFORD since 1997??? WTF? Why did it take so long? That means the SEC knew about Madoff since 1990. I guess watching porn is more important to those fools. At least in "Wall Street", they could track down and take Gordon Gecko down....but hey, that's hobbywood in the 80's.
The coming week is really critical.
Bearish:
IRA deadline has passed, the little guy happily contributed the money into the marked up market anticipating IRA contributions. A sharp drop of 4-5% (just like last April) would make a lot of sense: the little guy is stripped of his money and the market can continue grinding higher from a lower level fueled by 0% IR.
On Fri we had the first decent red day in 2 months. Now notice that large red candles are often surrounded by other red candles. Notice also the sharp Jan sell-off right into the earnings season.
The market is overextended: QQQQ, DIA have 7 consecutive weeks of gains.
Bullish:
The rebound on Fri: GS news was clearly a shocker exacerbated by the timing (midday, expr day). Yet, there was a noticeable bounce and the sell-off only erased SPY gains for the week - not a big deal.
Unknown:
The earnings: this week will show how much earnings surprise is already priced in. I am guessing all the good news are already priced in. But just like INTC demonstrated the market may still be able to react positively to good news.
Bearish:
IRA deadline has passed, the little guy happily contributed the money into the marked up market anticipating IRA contributions. A sharp drop of 4-5% (just like last April) would make a lot of sense: the little guy is stripped of his money and the market can continue grinding higher from a lower level fueled by 0% IR.
On Fri we had the first decent red day in 2 months. Now notice that large red candles are often surrounded by other red candles. Notice also the sharp Jan sell-off right into the earnings season.
The market is overextended: QQQQ, DIA have 7 consecutive weeks of gains.
Bullish:
The rebound on Fri: GS news was clearly a shocker exacerbated by the timing (midday, expr day). Yet, there was a noticeable bounce and the sell-off only erased SPY gains for the week - not a big deal.
Unknown:
The earnings: this week will show how much earnings surprise is already priced in. I am guessing all the good news are already priced in. But just like INTC demonstrated the market may still be able to react positively to good news.