Am I correct in assuming that WFC’s report tomorrow morning isn’t likely to give the banks a meaningful spike?

TanToday - 20 October 2009 04:59 PM

Eric Landstrom - 19 October 2009 03:07 PM

Well I put on my special waste handling gloves, flipped on some appropriate theme music, and purchased FRE.

The boy sure loves his LEPER GAL’s.

You see lepers, others see worthless glass and I see diamonds in the rough!

willrob - 20 October 2009 06:25 PM

Am I correct in assuming that WFC’s report tomorrow morning isn’t likely to give the banks a meaningful spike?

Their pre announcement of earnings back in March triggered this mother of all rallies so I would say it certainly could be market moving.  Lots of shorts in WFC so it should be a big move.

blogger guys says:

Citigroup Inc (C:NYSE) closed the 50 day moving average for the first time in three months. We also haven’t seen 4 straight down days in over three months. The next support level to watch out for would be $4.31 which was the low this month so far. If the $4.31 area doesn’t hold, look for $4.15-$4.20 to be a solid support level. I will be adding to my Citigroup long position when the stock closes back over the 10 day moving average ( currently at $4.68 ). I will really buy huge when Citigroup breaks through the double top at $5.00.

willrob - 20 October 2009 09:57 PM

blogger guys says:

Citigroup Inc (C:NYSE) closed the 50 day moving average for the first time in three months. We also haven’t seen 4 straight down days in over three months. The next support level to watch out for would be $4.31 which was the low this month so far. If the $4.31 area doesn’t hold, look for $4.15-$4.20 to be a solid support level. I will be adding to my Citigroup long position when the stock closes back over the 10 day moving average ( currently at $4.68 ). I will really buy huge when Citigroup breaks through the double top at $5.00.

It’s easy for him to talk smack about buying “huge” over $5 but when that bell rings I doubt he has the same conviction.  I’m looking at 4.15 personally.  To me from a technical standpoint it looks like that’s where it wants to go.  I’ll buy $5 2011’s pretty “huge” myself (will buy but the huge was more sarcasm) for a trade.  I tend to buy longer dated options just in case I am really wrong, I have time to for the trade to get on the “right side of me.”

The authors—Andrew D. Henderson of the University of Texas at Austin, and Deloitte Consulting’s Mumtaz Ahmed and Michael E. Raynor—begin with a caveat no less applicable to the joyous media blame-laying after the subprime debacle: “If you have a large number of players in a game in which luck plays a major role, then some players will assemble seemingly impressive winning records by chance alone.”

“Luck,” they add, “can mislead us . . . because humans tend to mistakenly perceive patterns in random data.”

Let’s be careful out there.

Wells Fargo Reports Record Q3 and Year-to-Date Net Income

* Record Wells Fargo net income of $3.2 billion, up 98 percent from last year;
$9.5 billion year to date, up 75 percent from last year
* Diluted earnings per common share of $0.56, up 14 percent from last year;
$1.69 per share year to date
* Results driven by record $10.8 billion pre-tax, pre-provision profit (PTPP);
PTPP has been more than two times quarterly net charge-offs each quarter this
year, despite cyclically elevated net charge-offs. (See footnote 4 on page 20
for information on PTPP)

But their stock which was up 70 cents in pre market, has been sold off on the news (fifty cents down at first, now only -.30 cents). So much for any boost to other banks.

MS, on the other hand, finally shows a profit, and its premarket price rises +2.15%

UPDATE 1-Morgan Stanley posts profit, tops Street view

Thursday October 22, 2009 02:27:12 PM GMT
Reuters News

MORGANSTANLEY/ (UPDATE 1)

* EPS 38 cents; Wall Street view 27 cents

* Breaks string of three quarterly losses

* Shares up 1 percent in premarket trading

NEW YORK, Oct 21 (Reuters) - Morgan Stanley reported better-than-expected third-quarter profit on Wednesday, ending a string of three straight losing quarters.

Results were bolstered by strong fixed income sales and trading revenue and improved investment banking underwriting results.

The New York-based firm reported net income for common shareholders of $498 million, or 38 cents a share. Analysts on average had forecast earnings of 27 cents a share, according to Thomson Reuters I/B/E/S.

In the year-earlier quarter earnings were $7.7 billion, or $7.38 a share, boosted by a one-time accounting gain resulting from declines in the value of certain liabilities in the bank’s portfolio.

Morgan Stanley shares were up 1 percent to $32.90 in premarket trading. (Reporting by Steve Eder; editing by John Wallace)

It looks like we’re getting a bump from MS and WFC after all. 4.55 so far (still under water for me).

Short squeeze perhaps - anyone looking to buy I don’t think would have bought where the stock was sitting this morning.  Was looking pretty nasty…

getting close to the 50 day again…

OT: An article pushing back on KBW’s assumptions about the GSEs. As you recall, it was KBW’s note that the GSEs common and preferred would go to zero that tanked FRE and FNM (both of which have subsequently recovered to Tuesday’s price level).

This is one lonely stock right now. Just seems like it will float aimlessly until a sell off comes.  Perhaps it can rise but right now I don’t even bother looking at a chart of it.  She’s one boring chick!

runedge - 22 October 2009 02:06 PM

This is one lonely stock right now. Just seems like it will float aimlessly until a sell off comes.  Perhaps it can rise but right now I don’t even bother looking at a chart of it.  She’s one boring chick!

I’d rather have a 3-4 cent move up than a more dramatic move down. Perhaps, as blogger guy says, it needs to retest 4.31 before it can move up significantly.

Citigroup Inc (C:NYSE) was down again on Wednesday after a downgrade on WFC took down the whole market late in the trading day. Citigroup appears to be holding the $4.40’s well but a break below this level would take it to back to retest the $4.31 support level. As most of you know, I hold a small long position and will be looking to add when Citigroup closes back over the 10 day moving average ( currently $4.66 ) and a close above $5. Until then, it is important that Citigroup hold the two recent lows of $4.31 & $4.11 or the stock will probably retest the 200 day moving average. Things are looking a little rocky right now with the stock but I still have a price target of $8-$10 in the next 11 months.

willrob - 22 October 2009 02:10 PM

... Perhaps, as a blogger guy says, it needs to retest 4.31 before it can move up significantly.

Citigroup Inc (C:NYSE) was down again on Wednesday after a downgrade on WFC took down the whole market late in the trading day. Citigroup appears to be holding the $4.40’s well but a break below this level would take it to back to retest the $4.31 support level. As most of you know, I hold a small long position and will be looking to add when Citigroup closes back over the 10 day moving average ( currently $4.66 ) and a close above $5. Until then, it is important that Citigroup hold the two recent lows of $4.31 & $4.11 or the stock will probably retest the 200 day moving average. Things are looking a little rocky right now with the stock but I still have a price target of $8-$10 in the next 11 months.

I won’t follow this blogger.  His behavior is inconsistent with his price target.  If he is convinced about the price target, why bother to time to the last cent or buy aggressively over $5.00.  Just buy all in now.