This morning Citigroup announced they are going to rework $20 billion in mortgages. Fannie and Freddie, the largest mortgage companies in the US, announced a new loan modification program that can cut the monthly payments for those that are at least 90 days delinquent. The plan would reduce monthly payments for borrowers by reworking the principle to be paid at a later time. The efforts by the government and by lenders to put a floor under the housing market is considered by many as crucial to stabilizing the economy.
The major market indices opened up strong based on the news from China on their major fiscal stimulus. The initial pop soon failed as we had a gap and crap type day. Most indices finished down for the day.
The group ended the week with a positive gain of .80% as Ross wins Gold with a 11.81% increase with his Short pick CCL. Peter claimed the Silver spot with entering his trade on Friday and closing out at end of day for a 5.6% winner. Grant too k Bronze with a 4.52% gain on his QID trade.Spectator Henry A continues his hot streak with another double digit gain of 13.12% and earning another 20 dollar credit. Max also earns a 20 dollar credit with his pick of TTES.Congrats to this week’s winners!
Hello from NY where Alex and I have just completed a great work session covering many topics about SpikeTrade. In a few minute we will be toasting and clinking glasses here at the campers meeting and talking markets. Hope to see a few of the spikers here in person or by remote.
Richard Weissman is the author of Mechanical Trading Systems – a very good book whose title does not begin to cover its meaning (this $95 book is available from elder.com for only $39). Richard is a very good teacher of technical analysis and trading, and he allowed us to distribute this link to his recent 1-hour class on the TA of gold and oil
I catch myself thinking of my late great friend Lou Taylor, to whom Trading for a Living was dedicated. Back in the 1950s Lou was riding a packed street car in New Orleans when a pregnant black woman walked in. Since no negroes (that was the language of the day) got up, Lou stood up and offered her his seat. When other whites pointed out to him he was in the white section, Lou simply moved the color bar (a device on a rail that ran the length of a street car, separating white and colored sections). Someone cursed him out, he answered back, punches flew, and soon was being taken off the street car in handcuffs. I know that had he been alive today (he’d be 90), he would laugh at the human comedy of it all. The country has caught up with Lou Taylor.
The top picks have been added to the members home page. Please take a look as we continue to add new features each week.The major market indices moved up early and finished near their highs, lead by energy and financial stocks. The markets will be able to focus on what impact the new leadership will have on our economy. The markets do not do well when there is uncertainty. The few days have shown some positive signs, but this continues to be a bear market and bear do not typically die in a few weeks. Continue to stay vigil and use sound money management.
The DOW traded in a 155 point range today. One of the narrowest days in months.NL dropped to under 100 as the NH_NL reverts back toward the 0 level. The VIX dropped to the low 50’s and this seemed like low volatility. When you are use to travelling at 200 miles per hour and hit the brakes and slow to 50mph you are going to feel as though you came to a screeching halt. The pullback needs to be on decreased volume and lower volatility.Tomorrow is the big election day and many are looking for the biggest turn out in history for this vote. It will be interesting to see the market’s reaction afterward. It appears most are discounting a turn of the tables and a political shift in Washington.
The group closed the week on a positive note with a .92% gain.Jeff won Gold with a 10.75% gain, Ross took Silver and Dave F got the Bronze.We have had some extraordinary participation from spectators. This we had 5 spectators earn 20 dollar credits.Henry A for the 3rd week straight has had 20 dollar credits earned. He is currently up 69.38% for the quarter. Ian F, Pat L, Sergey S, and Wessel de also had gains outperforming at least the Bronze medalist.Congrats to all this week’s winners!!
The market had an inside day today (a lower high than yesterday and also a higher low than yesterday) – buut it closed up for the day. The number of new low shrank from many thousands few days ago to just about 200 – bullish. At the same time, there are fewer than 10 New Highs – bearish.