8:50am (EST) Futures are pointing towards another strong open this morning as the bulls try to make it seven in-a-row. Dow futures are currently up 26 points, Nasdaq 100 futures are higher by 4.5 while the S&P 500 futures are up 3.3. In pre-market trading, shares of A123 Systems
1:00pm (EST) The market has hit 10-month highs as the Dow is currently up 80 points to 9,589. The Nasdaq is showing a gain of 15 points and stands at 2,033 while the S&P 500 has jumped 8 and is 1,034. I mentioned in the Weekly Wrap that economic news would take on
Market Gives Back Gains
The Dow pretty much gave back all of its 290 point gain on Monday with yesterday’s 280 point drubbing. The market was nervous after it was reported that Lehman Brothers (LEH, $7.79, down $6.36) had failed to attract a buyer for some or all of its assets and it only
Fannie and Freddie Under a Buck
Fannie Mae (FNM, $0.73, down $6.31) and Freddie Mac (FRE, $0.88, down $4.22) did their best Enron imitation on Monday as both stocks plunged to under a dollar. Sure, the government bailout was huge for the market but check out the true winners from yesterday. The Fannie Mae September 2.50
Opening Bell/ Closing Trades
The market has just opened and the financial stocks look like they will be trading lower. I’ve been mentioning four trades that we have going and how they should be closed today. If you still believe these stocks may go higher then you could sell half of your positions and
Financial Stocks Rally
A week ago, we scaled into a few positions in the financial stocks hoping for a quick rebound. In the 8/20 blog I talked about how some of the mid to major financial stocks were getting at their 52-week lows and we could play a quick bounce to the upside.
Fannie and Freddie: The Other Side of the Coin
Yesterday I mentioned that I couldn’t find a compelling reason to go long on Fannie Mae (FNM, $4.40, down $1.61) and Freddie Mac (FRE, $3.20, down $0.92) although the payoff could be huge. The problem was the risk. Even though the long call options were cheap, the fact that bankruptcy
Financial Stocks Weaker
The ride for the financial stocks has accelerated to the downside over the past few weeks and some big names are trading near 52-week lows again. We all know that there are some trading opportunities that come with these names and we have played them both ways. The option gains
Fannie and Freddie Spell F-I-R-E!
Fannie Mae (FNM, $13.49, down $1.82) and Freddie Mac (FRE, $7.64, down $2.59) are having a tough week as concerns about the two needing a government bailout have come to a head. The outlook is so bleak for both companies that Capitol Hill is meeting today to discuss contingency plans