Archive for June, 2008|Monthly archive page

TIDBITS

TIDBITS

Two former managers of the Bear Stearns hedge funds that imploded last year surrendered to the FBI on Thursday and are expected to be charged with securities fraud by US prosecutors.

More than 400 real estate industry players have been indicted since March — including dozens over the last two days — in a Justice Department crackdown on incidents of mortgage fraud nationwide that have contributed to the country’s housing crisis.

Ford Motor (F) lowered its hopes further, saying its 2008 automotive results will be worse than 2007 and it will be difficult to break even on an operating basis next year. The auto maker also cut its production targets and said it will delay its new F-150 pickup.

Corning (GLW) continues to see strength in LCD TV sales

Boeing (BA) achieves 787 power on, company repositioned for major air tanker contract after government terminated previous award to Northrop Grumman for inaccurate accounting done by Air Force during selection process.

As gasoline prices continue climbing, demand has been waining. So far this year, Americans have used less gasoline than they did in 2007, with demand since January dropping 1% from last year, according to the Department of Energy. WSJ.

The low-fare airlines aren’t so low anymore. Jet fuel costs Euro” up more than 80% over last year Euro” are forcing the airlines to sharply raise some fares, and reinvent themselves to appeal to not just bargain hunters, but also the briefcase crowd that generally pays more for last-minute tickets. NYT.

The world’s population will reach 7 billion in 2012, even as the global community struggles to satisfy its appetite for natural resources, according to a new government projection. There are 6.7 billion people in the world today. The United States ranks third, with 304 million, behind China and India, according to projections released Thursday by the Census Bureau.

China raised its base price for gasoline by 17%, a move that global oil traders concluded would diminish the country’s appetite for fuel; benchmark crude fell 3.5%. The decision marks Beijing’s largest increase in fuel prices in four years.

The dominant market mode

Selling remains the dominant market mode as weakness from Financial stocks weighs on the major averages.

We’ve held a seller’s bias for the past two weeks as heavy selling volume often precludes moves down.

The sellers' bell

The sellers’ bell rang loud and clear Friday.

It’s a strong signal when the market makes a large move on heavy volume.

In this case the Bear is telling us it’s alive and threatening to stick it to the Bull in a major way.

We’ve raised our Red Flag sellers bias.

Profits from long positions must be guarded closely.

The 50-day averages will be telling this week. A further fall tells us the Bulls aren’t up to defending it.

Our Take


Our Take On The Market: Tuesday’s heavy selling threatens to become contagious as key Financial stocks flirt with lows.

Markets tend to head where Tech and Finance take them. But with Tech showing spurts of strength lately it’s turned into a tug-of-war that only time will resolve.

Bulls are happy to see decent buying on the Dow to mark an accumulation day.