Thread: This Week in Stocks: 8/4 - 8/10/07

What a week! After the flush Friday I think I'm getting a bit more defensive. Going to sell my EWJ Monday. It has almost hit the "stop" and it has broke support.

Thinking of selling USO also. Made some good gains on that one but it is a ETF and not directly in sync with crude.

Here is the weekly video from the Nightly Business Reports Market Monitor.

http://www.pbs.org/nbr/wrapper/marketmonitor.html

Bear Stearns to fire top trader: reports
Bank attempts to reassure investors that it can weather storm

By Murray Coleman & Alistair Barr, MarketWatch
Last Update: 11:35 AM ET Aug 4, 2007

SAN FRANCISCO (MarketWatch) -- Bear Stearns appears ready to fire its high-flying chief of stock and bond trading, considered a leading candidate for the top job at the bank, as it uncoils from the staggering downturn in the credit markets, according to published reports.
The Wall Street Journal, citing an unnamed source, reported Saturday that the securities firm's board will meet on Monday to discuss the exit of Warren Spector, who oversees Bear's entire capital markets business.
The New York Post in its Saturday edition quoted an insider, reportedly briefed about the firing, who said: "Warren never got out in front of this - in fact, it got worse on a daily basis and eventually put the firm at risk."
Spector, 49, has spent his entire career at Bear, earning a reputation as a savvy mortgage-bond trader. But his future took a dramatic turn in late spring when the prices on mortgage-related securities began dropping rapidly, leading to the demise of the High-Grade Structured Credit Strategies Fund and a more leveraged sister fund at Bear Stearns.

http://www.marketwatch.com/news/stor...D&siteid=yhoof

What a frigging bloody two weeks here!

Just when I thought things were about to calm down, that the volitility was soothing down, and that the market was ready to p[op northward once again, we get slammed again on Friday.

OUCH. That smarts.

I'm starting to think this is a fundemental sea change, not just the pause that refreshes.

One theory- the minimum wage.

Could it be that the increase in the minimum wage is having this affect on the markets in general, sending them all down?

I don't know.

But what I DO know is that this week's friday blowout was NOT what I was expecting, and that Friday closed on an accelerating down trend.

Not good.

Originally Posted by James48843

But what I DO know is that this week's friday blowout was NOT what I was expecting, and that Friday closed on an accelerating down trend.

Not good.

That seem like the "big boyz" were jumping ship at the last minute leaving the dumb money holding the bag.

AP
American Home Mortgage Files Chapter 11
Monday August 6, 8:15 am ET American Home Mortgage Files for Chapter 11 Bankruptcy Protection

NEW YORK (AP) -- American Home Mortgage Corp. filed for bankruptcy protection on Monday, the latest casualty of a mortgage industry that has plunged into distress.

The Melville, N.Y.-based mortgage lender asked a court in Wilmington, Del. for Chapter 11 bankruptcy protection from its lenders.

The filing follows a week of turmoil for the 10th-biggest U.S. home lender. Ten days ago, American Home Mortgage froze the 70 cent-per-share dividend scheduled to be paid that day.

Last week, American Home Mortgage said many of its lenders wanted their money back, and said it was unable to deliver as much as $800 million for mortgage loans promised to home buyers.

The company said late last week it planned to lay off almost 90 percent of its 7,000 employees.

The stock market had already anticipated that the company was likely to go bankrupt. The company's shares, which closed 2006 at more than $35, tumbled to 69 cents on Friday. In premarket trading Monday, the stock fell 20 cents, or 28.1 percent, to 50 cents.

American Home Mortgage's 40 biggest creditors include virtually all of Wall Street. The company's three biggest creditors are Deutsche Bank AG, Wilmington Trust Co., and JPMorgan Chase & Co. The company hired the law firm Young Conaway Stargatt & Taylor LLP as general bankruptcy counsel. American Home Mortgage also hired Stephen F. Cooper to be chief restructuring officer. Cooper was also chief restructuring officer for Enron Corp.

Looks like a good start. No black Monday yet. What to do ahead of the fed...
Will we sell of after the Fed?

Originally Posted by clester

Looks like a good start. No black Monday yet. What to do ahead of the fed...
Will we sell of after the Fed?

Dead cat bounce?

Tuesdays continue to be pretty bad, don't they?

Originally Posted by weatherweenie

Dead cat bounce?

Tuesdays continue to be pretty bad, don't they?

Good point! I hate Tuesdays.

I believe the Fed will be very careful with their statement, but the market has the jitters and will read into it to much.

It's so tempting to jump in on the weakness, especially when we see signs of life in the indices as we are seeing today. I believe this could be a time to buy - only if - you are looking out 3, 6, or 12 months, but if you are a short-term trader (days/weeks) you should use these rallies to lighten up. This correction isn't over. Too much technical damage. If the Fed doesn't satisfy we'll turn right back down, imho.

In '98, the Fed cut rates at an FOMC meeting during the Russian currency crisis that started to affect hedge funds, and the market went right down. It wasn't until the 2nd surprise rate cut that the market perked up for good.

Totally. Looking at the big picture, the charts are still a nightmare. This is the work of a short squeeze and a few hedge funds looking to make a quick buck gambling on the Fed decision tomorrow. Fed's gonna have to really watch their wording because tomorrow is going to be a very emotional day. It is a long term buyers market though.