10 December 2009 - The Financial Market Games

Stocks climb as investors shrug off debt concerns


NEW YORK (AP) -- Investors set aside some of their concerns about rising debt levels around the world and looked for bargains after a two-day slide in stocks.[You must be registered and logged in to see this image.]
AP - FILE - In this Dec. 4, 2009 file photo, Traders work on the floor of the New York ...


Stocks turned higher late Wednesday after trading erratically, and the Dow Jones industrials closed up 51 points. Investors have been cautious about rising government debt levels in Spain, Greece and other countries.
Investors started out looking for safety after Standard & Poor's reduced the outlook on Spain's debt rating. But analyst upgrades of manufacturing conglomerate 3M Co. and telecommunications company Sprint Nextel Corp. drew some buyers.
Concerns that troubled balance sheets have shifted from banks to governments have dogged investors for weeks. A warning from S&P about Spain came a day after another agency lowered its credit rating on Greece's government. Investors have been watchful for other signs of problems with global debt ever since a state-run company in Dubai shocked investors two weeks ago by asking its creditors for a reprieve.
Meanwhile, stocks again followed moves in the dollar, as they have for months. When it falls, the dollar makes commodities cheaper for foreign buyers and raises profits for U.S. companies that do business outside the U.S.
The dollar has steadied this week against other major currencies, interrupting a steady slide since March. The greenback has fallen as investors take advantage of cheap financing to invest in riskier, higher-yielding assets like stocks and commodities. Signs that the economy is improving have cut into demand for safe-haven investments.
In recent weeks, however, investors have been shuttling between buying stocks and hoarding cash as they try to lock in some of the big gains they've amassed in stocks since a rally started in March.
As the end of the year approaches, many investors have been building up defensive investments like Treasurys. The uncertain tone in the market, combined with light trading volume, has made for choppy trading, which analysts expect to continue through the rest of the year.
Tom Phillips, president of TS Phillips Investments in Oklahoma City, said he expects the dollar will lose its pull over the stock market because so many traders have placed bets that the currency will fall and boost stocks.
"When everybody understands the game the game doesn't work as well," he said. "I think it will just fray and start to erode."
The Dow rose 51.08, or 0.5 percent, to 10,337.05 after falling 104 on Tuesday. The Dow crossed cross the unchanged mark 59 times.
The broader S&P 500 index rose 4.01, or 0.4 percent, to 1,095.95, its first gain of the week. The Nasdaq composite index rose 10.74, or 0.5 percent, to 2,183.73.
The ICE Futures US dollar index, which tracks the dollar against other major currencies, fell 0.3 percent.
Investors have been reassessing their investment strategy this month as reports signal the economy is improving. While investors want to see the economy grow, they also know that the Federal Reserve could raise interest rates and remove other stimulus measures once the economy appears to be on solid footing. Higher rates could make stocks look less appealing as returns for other investments improve, potentially upsetting a nine-month advance in stocks that has lifted the S&P 500 index to a gain of 21.3 percent for 2009.
Hugh Johnson, chairman and chief investment officer of Johnson Illington Advisors in Albany, N.Y., said signs of improvement in the economy are disrupting advances in the markets because traders predict the Fed will be forced to raise interest rates sooner than expected to keep inflation in check.
The government reported Friday that employers cut the fewest jobs in November since the recession began two years ago. The figures were far better than expected and prompted a re-evaluation of where the Fed stands, despite comments from Fed Chairman Ben Bernanke that interest rates will remain low.
"That's going to be tough to defend," Johnson said, referring to the Fed's stance on rates. "That's why investors have started to rethink all of the things that have made money over the past nine months."
In other trading, Treasurys fell, sending yields higher. The yield on the benchmark 10-year Treasury note rose to 3.44 percent from 3.39 percent late Tuesday.
An analyst upgrade of 3M helped lift the Dow industrials a day after it dragged the index down when its profit forecast disappointed investors. 3M rose $2.63, or 3.4 percent, to $79.74.
Sprint Nextel rose 22 cents, or 5.6 percent, to $4.13 after an analyst raised his rating on the company.
Gold slid, while oil fell $1.95 to settle at $70.67 per barrel on the New York Mercantile Exchange.
The Russell 2000 index of smaller companies rose 0.33, or 0.1 percent, to 598.03.
Advancing stocks narrowly outpaced those that fell on the New York Stock Exchange, where consolidated volume to 4.2 billion shares compared with 4.8 billion Tuesday.
Overseas, Britain's FTSE 100 fell 0.4 percent, Germany's DAX index and France's CAC-40 each lost 0.7 percent. Japan's Nikkei stock average fell 1.3 percent.

Understand what player think either usa or local market is very crucial for short term trader to take advantage of this "mind measurement" and translate it into profit1

anyway i still have 222400 shares of hsi-c7 bought yesterday at 1.21

maximent wrote:anyway i still have 222400 shares of hsi-c7 bought yesterday at 1.21

Hope today hsi rebound 500+ points then you should have 0.05 cent profit.............
Good luck............
As what i said..............C7 is a good steady strategy index call warrant.........

Morning all..................i am just back from work.............

morning bmw

brought genm-ck 1000 lots

yesterday i just remind mystock to look at those children below 10 cents and it's happen today..astro cc jump from 0.075 to 0.105 or 40% in just minutes

radar maybank!!

kyoong wrote:brought genm-ck 1000 lots

reasonably good1 price.....good luck kyoong

kyoong wrote:radar maybank!!

maybank very volatile...better be careful

kyoong should buy 2000 lots genm ck since kyoong have money..never too scary1

maximent wrote:

kyoong wrote:brought genm-ck 1000 lots

reasonably good1 price.....good luck kyoong

thanks ^^

kyoong wrote:

maximent wrote:

kyoong wrote:brought genm-ck 1000 lots

reasonably good1 price.....good luck kyoong

thanks ^^

nevertheless, buy at close to 4% is consider quite high for genm ck...but since conversion is low and children is cheap plus seems bull might be back...just hold it lo (ur style, but this time not zmp1)

buy some more kyoong since u are in and wet ur leg, limited risk, cause banker reduce the bid spread...buy more

as for maybank cj..the premium is not good...avoid it...if just now 1.03 can consider

at least kyoong today wake up liao...1000 lots in man...good1..as for me..i make one cents for hsi-c7..but i aim at at least 5 cents...or maybe 10 cents wait till tomorrow

genm ck with 1 cent spread is golden opportunity for us to punt...i may in too if i sold my hsi c7 today or tomorrow...

look at genm queue it has the "encouragement" to go at least 2.83

premium can drop very fast for genm ck if mother up

maximent wrote:premium can drop very fast for genm ck if mother up

something like 0.4% for every mother bid

good morn guys...

hlk wrote:good morn guys...

morning lily....anything in hand?

attack1 genm ck 2000 lots comrades if 2.83 being breach and with AT LEAST 500 lots queue and stabilize

maximent wrote:

hlk wrote:good morn guys...

morning lily....anything in hand?

nope...nothing...