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Oil rebounded from a six-month low in New York after Japan’s economy expanded faster than estimated in the first quarter and amid expectations an inventory glut at the main U.S. storage hub in Oklahoma may ease.
West Texas Intermediate advanced as much as 1 percent, climbing for the first time in five days, as Japan’s economy expanded an annualized 4.1 percent in the first quarter. Oil also gained as Enbridge Inc. and Enterprise Products Partners LP prepared to reverse flows on the Seaway pipeline, pumping crude south from Cushing, Oklahoma, to the Gulf Coast. Brent traded below $110 for a barrel for the first time since January.
“There’s been some good buying out of Asia after the Japanese data,” said Robert Montefusco, senior broker at Sucden Financial Ltd. in London. “WTI had been taking a battering lately with all the stock builds, so if we get confirmation of crude moving down the reversed pipelines that may encourage buying,” he said.
Crude for June delivery rose as much as 91 cents to $93.72 a barrel in electronic trading on the New York Mercantile Exchange and was at $92.96 at 11:06 a.m. London time. The contract yesterday fell 1.2 percent to $92.81, the lowest close since Nov. 2. Prices are down 5.8 percent this year.
Brent oil for July settlement slipped 3 cents to $109.72 a barrel on the London-based ICE Futures Europe exchange. The contract traded earlier at $109.01, marking the first drop in front-month Brent futures to less than $110 since Jan. 25. The June contract expired yesterday, falling 53 cents to $111.71. The European benchmark contract was at a premium to West Texas Intermediate of $16.31.
Technical Indicators
Oil advanced in New York after reaching technical support at $92.75 a barrel, according to data compiled by Bloomberg. On the daily chart, that’s the 50 percent Fibonacci retracement of the rise from October’s intraday low of $74.95 to the March high of $110.55 and is where futures reversed a decline in December.
Crude’s 14-day relative strength index has been below 30 for the past week, signaling further losses may not be sustainable. Buy orders tend to be clustered near chart-support levels. The RSI was at 26 today.
Japan’s economic growth in the last quarter was forecast to be 3.5 percent, based on the median estimate of 27 economists in a Bloomberg News survey. Singapore’s non-oil domestic exports increased 8.3 percent in April, compared with a median estimate of 5.9 percent in a separate survey.
Oil has fallen this week as Greece failed to agree on a coalition government following May 6 elections, raising concern that Europe’s debt crisis will worsen and derail the global economic recovery. The European Central Bank said yesterday it will temporarily stop lending to some Greek banks to limit its risk. The country announced a caretaker administration and will probably hold new elections next month.
Seaway Reversal
Prices dropped yesterday after U.S. stockpiles rose to the highest level since 1990 and a report signaled the nation may release emergency supplies. Crude inventories climbed 2.1 million barrels last week to 381.6 million, data from the Energy Department showed.
The U.S. has called on other Group of Eight nations to prepare to release strategic oil reserves because of the full implementation of the European Union’s ban on imports from Iran starting July, the Kyodo news service reported, citing unidentified officials familiar with Japan-U.S. ties.
Enbridge and Enterprise are scheduled to reverse the Seaway pipeline today, according to an April filing with federal regulators. A rise in Canadian and Midwest U.S. oil production, and limited transportation out of the Cushing storage hub, have created a supply glut.
Mainline Capacity
“Oil inventories being built up in the Midwest, with nowhere to go, will start to be relieved because of the pipeline,” Victor Shum, managing director at consultant Purvin and Gertz Inc. in Singapore. “The recent moderation in oil prices may be temporary, global oil demand is likely to strengthen in the summer.”
Enbridge, the biggest carrier of Canadian oil to the U.S., said yesterday it will spend about $3 billion to boost the capacity of its mainline system and give western producers access to refiners in the Midwest and Quebec.
Stocks to watch Thursday: Boyd, HollyFrontier
05/17 06:52 AM
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WASHINGTON (MarketWatch) -- Among the stocks that could see active trade in Wednesday's session are Boyd Gaming Corp. (BYD:$6.98,00$-0.01,00-0.14%) , HollyFrontier Corp. (HFC:$29.57,00$1.21,004.27%) and Red Robin Gourmet Burgers Inc. (RRGB:$35.75,00$-0.49,00-1.35%)
Retail-sector results are the clear standouts in Thursday's earnings calendar, featuring Wal-Mart Stores Inc. (WMT:$59.19,00$-0.16,00-0.27%) , Bon-Ton Stores Inc. (BONT:$4.41,00$-0.48,00-9.82%) , Dollar Tree Inc. (DLTR:$101.30,00$0.18,000.18%) , Shoe Carnival Inc. (SCVL:$20.07,00$-0.12,00-0.59%) , Advance Auto Parts Inc. (AAP:$82.10,00$1.02,001.26%) and GameStop Corp. (GME:$20.84,00$0.22,001.07%) , while a handful from the apparel segment -- Gap Inc. (GPS:$27.10,00$-0.33,00-1.20%) , Stein Mart Inc. (SMRT:$6.24,00$0.02,000.32%) , Ross Stores Inc. (ROST:$62.21,00$1.03,001.68%) , New York & Co. (NWY:$3.43,00$-0.07,00-2.00%) , Aeropostale Inc. (ARO:$18.71,00$-0.43,00-2.25%) , Buckle Inc. (BKE:$41.65,00$-0.50,00-1.19%) , Zumiez Inc. (ZUMZ:$36.91,00$0.32,000.87%) and Children's Place Retail Stores Inc. (PLCE:$44.53,00$-0.32,00-0.71%) -- are scheduled to report as well. Perry Ellis International Inc. (PERY:$17.48,00$-0.11,00-0.63%) , Prestige Brands Holdings Inc. (PBH:$13.71,00$-0.14,00-1.01%) , Salesforce.com (CRM:$136.58,00$-1.52,00-1.10%) , Intuit Inc. (INTU:$55.10,00$-0.39,00-0.70%) , Autodesk Inc. (ADSK:$35.89,00$-0.56,00-1.54%) , Applied Materials Inc. (AMAT:$10.66,00$-0.15,00-1.39%) , Brocade Communications Systems Inc. (BRCD:$4.90,00$-0.09,00-1.80%) , Precision Castparts Corp. (PCP:$165.66,00$-1.10,00-0.66%) and Quality Systems Inc. (QSII:$29.71,00$-0.17,00-0.57%) also are on deck.
Late Wednesday, Boyd Gaming (BYD:$6.98,00$-0.01,00-0.14%) struck a deal to acquire privately held Peninsula Gaming LLC for $200 million in cash and the assumption of about $1.2 billion in debt. The acquisition of the Dubuque, Iowa-based casino operator brings with it five properties located in Kansas, Iowa and Louisiana. "The Peninsula properties are a strong fit for us," said Keith Smith, president and chief executive of Las Vegas-based Boyd Gaming (BYD:$6.98,00$-0.01,00-0.14%) , in a statement. "We anticipate this transaction will be immediately accretive to earnings and significantly increase our free cash flow." The transaction's expected to be completed by year's end. Terms also call for Peninsula to include a note valued at about $144 million.
Continuing its recent pattern of returning money to stockholders, HollyFrontier's (HFC:$29.57,00$1.21,004.27%) board declared a special cash dividend of 50 cents a share. It's payable June 5 to holders of record as of May 29 and marks the fourth such special dividend since last August, according to the Dallas-based energy company . In addition, HollyFrontier's (HFC:$29.57,00$1.21,004.27%) board approved a 50% increase in the company's quarterly dividend, to 15 cents a share, payable July 3 to holders of record as of June 12. This is the third dividend increase in less than a year, in the aftermath of the merger of Holly Corp. and Frontier Oil Corp. last July. Total dividends declared since then represent a yield of more than 8% on an annualized basis, the company said. Including stock repurchases, HollyFrontier (HFC:$29.57,00$1.21,004.27%) said it's returned $650 million of capital to its stockholders since the merger.
In reporting "mixed" financial results for the 16-week first quarter ended April 15, Red Robin Gourmet Burgers (RRGB:$35.75,00$-0.49,00-1.35%) sounded a note of caution on customer counts for the Greenwood Village, Colo.-based casual dining chain. "Although we began the year with strong sales, we were disappointed by the extent of guest traffic softening in the second half of the quarter," said CEO Steve Carley in the earnings release. In updating the company's outlook for the 53-week fiscal year ending Dec. 31, Red Robin (RRGB:$35.75,00$-0.49,00-1.35%) said it expects to generate growth of "up to 1%" in comparable restaurant net sales from the previous year. Management also noted that a 1% variation in projected guest counts would have an estimated effect of 25 cents a share for earnings.
Along with reporting higher profit but relatively flat revenue for the second quarter ended April 15, San Diego-based Jack in the Box Inc. (JACK:$22.45,00$-0.16,00-0.71%) forecast a slowdown in year-over-year growth in same-store for its namesake and Qdoba restaurant chains in the third quarter. For the full fiscal year, the San Diego-based company projected earnings in a range of $1.28 to $1.50 a share as well as operating earnings of $1 to $1.15 a share. Both profit forecasts exclude restructuring charges anticipated in the third and fourth quarters.
Baltimore-based asset manager Legg Mason Inc. (LM:$24.05,00$1.67,007.46%) priced $650 million of seven-year senior notes, which will bear interest at an annual rate of 5.5%, paid twice a year beginning Nov. 21. The company said net proceeds will be used, along with cash on hand and other borrowings, to buy back $1.25 billion of 2.5% contingent convertible senior notes held by a fund managed by Kohlberg Kravis Roberts & Co. LP. The buyback will result in a net reduction in outstanding debt, Legg Mason (LM:$24.05,00$1.67,007.46%) said in announcing details of a new capital plan earlier Wednesday.
The board of Wabtec Corp. voted to increase by 67% the company's quarterly dividend, to 5 cents a share. The new dividend's payable Aug. 31 to holders of record as of Aug. 17, the Wilmerding, Pa.-based provider of products for the railroad industry said.
Along with reporting results for the fourth quarter ended March 31, Spartan Stores Inc. (SPTN:$17.53,00$-0.26,00-1.46%) said its board approved a 23% hike in its quarterly cash dividend, to 8 cents a share. The new dividend's payable June 15 to holders of record as of June 1, the Grand Rapids, Mich.-based company said. As of May 15, Spartan Stores (SPTN:$17.53,00$-0.26,00-1.46%) said it had more than 21.6 million common shares outstanding.
The board of candle and accessories company Blyth Inc. (BTH:$73.69,00$0.95,001.31%) approved a 2-for-1 stock split, with additional common shares to be distributed June 15 to holders of record as of June 1. The split will increase Blyth's shares outstanding to 17.2 million, the Greenwich, Conn.-based company said.
The board of Watts Water Technologies Inc. (WTS:$33.20,00$0.54,001.65%) authorized the No. Andover, Mass.-based company to buy back up to 2 million shares of Class A common stock. Repurchases will be made from time to time in the open market or via privately negotiated transactions. In a statement, CEO David Coghlan said that the company believes Watts Water (WTS:$33.20,00$0.54,001.65%) stock is undervalued and that it's in stockholders' interest that shares be bought back to offset dilution associated with employee stock plans. As of April 30, Watts Water (WTS:$33.20,00$0.54,001.65%) said, there were nearly 29.8 million Class A common shares outstanding. The buyback program will be funded using the company's available cash.
Gold Consumer Demand Slides 29% in India
DNDN<>Dendreon yesterday confirmed that the SEC has opened an investigation, which could be connected to lawsuits accusing the company of misleading investors over Provenge. While Dendreon had initially been bullish about the prostate-cancer treatment, it shocked the market in August 2011 when it said that adoption was slow, causing Dendreon's stock to plunge over 65% in one da
The European Bank “Death List” pdf
http://www.instutrade.com/media/10836/european-bank-death-list.pdf
SHLD<more: Domestic comparable-store sales fell 1.3%, including a 1% decline at Sears and 1.6% dropoff at Kmart. Apparel and footwear categories at Sears Domestic saw double-digit sales increases, partially offsetting declines in home appliance and consumer electronics. Gross margin +100 bp compared to last year
Ad execs say jury still out on Facebook as medium
05/16 07:30 PM
--------------------------------------------------------------------------------
By Nicola Leske and Kate Holton
NEW YORK/LONDON, May 16 (Reuters) - General Motors Inc's decision to stop advertising on Facebook (FB:...) may be a wake-up call for the No. 1 social network, but Top advertising executives say it's far too early to know if the site will take off as an advertising platform.
"There's a lot of potential but it's not a slam-dunk," said Martin Sorrell, chief executive of WPP Plc (WPPGF:$13.04,00$-0.34,00-2.54%) , the world's largest advertising agency.
"Showing the impact of branding on Facebook (FB:...) is going to take a long time," he added.
Facebook (FB:...) is due to begin trading on Nasdaq on Friday in an initial public offering that will raise about $15.2 billion, the biggest ever from Silicon Valley. With almost a billion users, Facebook (FB:...) generated nearly $4 billion in revenue last year, mostly from advertising.
News on Tuesday that GM, the third largest advertiser in the United States, was pulling back from Facebook (FB:...) raised questions about whether ads on the social network are really more effective than on traditional media.
In addition, the company last month reported its first quarter-to-quarter revenue slide in at least two years.
"For GM, advertising on Facebook (FB:...) is the equivalent of hanging up posters in a high school ... why would anyone stop to look at the posters when they are congregating, talking in the hall?" Russ Lange, co-founder of marketing consultancy CMG Partners said.
When companies set their marketing budgets in August and September, Lange expects them to consider the question of whether Facebook (FB:...) can be an effective advertising tool.
"They're going to see the GM pullout as a reality check," said Ronald Camhi, head of the Advertising Marketing and Media practice at law firm Michelman & Robinson.
Advertising experts do not expect many companies to follow GM. Major brands such as Nike (NKE:$107.00,00$-0.22,00-0.21%) , Nordstrom (JWN:$50.05,00$-0.57,00-1.13%) , Wal-Mart (WMT:$59.19,00$-0.16,00-0.27%) and Ford said they were continuing to advertise on Facebook (FB:...) .
"Macy's (M:$37.29,00$0.28,000.76%) does advertise on Facebook (FB:...) , and digital media overall continues to be one of our fastest growing media segments. Our Facebook brand page serves as a forum for rich conversation with our most passionate customers, and we continue to see great growth in fan participation and engagement," said a Macy's (M:$37.29,00$0.28,000.76%) spokeswoman, Holly Thomas.
MEASURING IMPACT
Nevertheless, experts say Facebook (FB:...) has to step up its game in explaining how it can be useful and effective for companies to incorporate the site in their campaigns.
"When I look at the GM news it is a little concerning," said Bernie Williams, a money manager for USAA. "They have to make that switch, from display to how to sell a product without ruining that social interaction. That could be a tough trick although they have 60 percent of the world's population."
Facebook (FB:...) declined to comment for this story.
In its IPO prospectus, the company singled out effective marketing campaigns such as the "Mean Stinks" confessional-style video clips to generate awareness for Procter & Gamble's (PG:$64.29,00$0.57,000.89%) "Secret" deodorant. Facebook (FB:...) said Secret's U.S. sales leapt 9 percent in the 26 weeks the campaign ran.
WPP's (WPPGF:$13.04,00$-0.34,00-2.54%) Sorrell said Facebook (FB:...) has only had "limited success" in proving the effectiveness of its site as an advertising platform.
Unlike TV advertising, which companies know how to handle, Facebook (FB:...) offers new tools that companies have yet to learn, other advertising executives said.
"We are only just beginning to understand the potential for brands and the return on investment on ads there too," said David Jones, CEO of advertising agency Havas.
"TV has been going on for 50 years so everyone has it down pat. Many of the advertising platforms on Facebook (FB:...) are only a year old. This will take some time," added Jones, who is also on the Facebook Client Council, an advisory board of 12 people from ad agencies to digital specialists.
One of the main issues surrounding ads on Facebook (FB:...) is how to measure their effectiveness and return on investment (ROI).
"From a traditional ROI standpoint, Facebook (FB:...) has a lower click-through than others such as Google (GOOG:$628.93,00$17.82,002.92%) for example," Camhi said.
"The advantage Facebook (FB:...) has is that the time spent on a page is higher," Camhi said but added that Facebook's (FB:...) metrics for measuring effectiveness needed to be clearer. "Unlike Google (GOOG:$628.93,00$17.82,002.92%) which prides itself on its analytics, Facebook (FB:...) will have to work on getting their metrics out," he added.
The need for clarity and to address marketing needs has not gone unnoticed by Facebook (FB:...) . The company, founded by Mark Zuckerberg in a Harvard University dorm room in 2004, has ramped up its outreach to Madison Avenue.
Last year, Facebook (FB:...) hired Carolyn Everson, an ad industry veteran who worked at Microsoft Corp (MSFT:$29.90,00$-0.31,00-1.03%) , Viacom's (VIA:$51.79,00$0.80,001.57%) MTV Networks and Walt Disney Co (DIS:$45.08,00$0.07,000.16%) , and the company hosted a splashy event in New York in March to showcase its newest ad offerings.
"I think they will be concerned about it, anybody would be, but it doesn't seem to have affected the IPO," Sorrell said of the GM move.
"There are 900 million people on the planet who use Facebook (FB:...) . It's an incredible achievement," he added. (Additional reporting by Leila Abboud in Paris, Phil Wahba and Manuela Badawy in New York, and Jessica Wohl and Nivedita Bhattacharjee in Chicago; Editing by Tiffany Wu and Phil Berlowitz)
GLOG<>GasLog: Q1 EPS of $0.06 beats by $0.03. Revenue of $16.6M (+1.8% Y/Y)
upsidetrader<>Hedge funds counted for 1/3 of all $AAPL shares sold in the first quarter
Afraid so, in some form or fashion....
JPMorgan's Trading Loss Is Said to Rise at Least 50%
New York TimesBy NELSON D. SCHWARTZ and JESSICA SILVER-GREENBERG | New York Times – 34 minutes ago
http://finance.yahoo.com/news/jpmorgans-trading-loss-said-rise-100803486.html?l=1
QE3 is coming.......not if, just when!!
CRDN<>Ceradyne Board Approves Quarterly Cash dividend Of $0.15 Per Share; Record June 5 / Payable June 19
ElliotWave<>Inflation Declines As Fed Retracts Liquidity Pump!
http://www.elliottwavemarketservice.com/2012/05/inflation-declines-as-fed-retracts-liquidity-pump/
~>Fitch Warns Banks Must Raise $566 Billion in New Capital<~
By MARK SCOTT
May 17, 2012, 6:20 am
The world’s largest banks must raise a combined $566 billion to satisfy new capital requirements, Fitch Ratings said on Thursday, as authorities demand that firms hold more cash in reserve to protect against future financial shocks.
The figure represents a 23 percent increase to what the banks currently hold in reserve and will likely hit their returns on equity, a critical figure used to gauge a firm’s profitability, Fitch said.
cont for full http://dealbook.nytimes.com/2012/05/17/fitch-warns-banks-must-raise-566-billion-in-new-capital/
PLCE<>Children's Place Retail Stores Q1 Adj. EPS $1.10, Flat With Last Year
S&P +0.1%, Dow +0.1%--U.S. stock futures nudge higher in front of economic releases that include weekly jobless claims and Philly Fed Manufacturing Index
sa<>General TVIX Has Been Demoted: Use VIX ETFs Instead
May 16, 2012 | 23 comments | about: TVIX, includes: UVXY, VQT, VXX, XIV
http://seekingalpha.com/article/595341-general-tvix-has-been-demoted-use-vix-etfs-instead
Guten Morgen to all!
<<Sears (SHLD): Q1 EPS of -$0.31 may not be comparable to consensus of $-0.65. Revenue of $9.3B (-2.8% Y/Y) beats by $150M.
Who Will Be The Next JPM?
Submitted by Reggie Middleton on 05/17/2012 06:02 -0400
Charts, and comments
http://www.zerohedge.com/contributed/2012-20-17/who-will-be-next-jpm?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
SHP<>ShangPharma Posts Q1 Net Income Per ADS Of $0.09 Vs. $0.16 Last Year
$CTRP Upgraded to Hold at Brean Murray
SSI<>Stage Stores: Q1 EPS of $0.05 beats by $0.08. Revenue of $365.7M (+5.5% Y/Y) beats by $1.7M
SHLD<>Sears Holdings Posts Q1 EPS From Cont. Opns. Of $1.78 Vs. Loss $1.53 Last Year partial spinoff of Sears Canada...will own 51%
KYTHERA Biopharmaceuticals Files For IPO Of Up To $86.25 Mln Of Common Stock
QSII<>Quality Systems: FQ4 EPS of $0.25 misses by $0.02. Revenue of $109M (+12.3% Y/Y) misses by $3M.
wsj<>White House officials have intensified talks with Treasury folks following the surprise JPMorgan trading loss, sources say, as the White House wants to ensure a tough interpretation of the Volcker Rule. Trouble is, even if JPM violated the spirit of Volcker, it may have found a legal way to work around the fine print
http://online.wsj.com/article/SB10001424052702303360504577408551963296174.html
TSEM<>Tower Semiconductor: Q1 EPS of $0.06 misses by $0.03. Revenue of $168M (+39% Y/Y) misses by $4M
GSOL<>Global Sources: Q1 EPS of $0.10 misses by $0.02. Revenue of $38.9M (+3.7% Y/Y) beats by $2.4M
$ATO Upgraded to Buy at Bank of America
6:00 AM Overseas: Japan +0.9%. Hong Kong -0.3%. China +1.4%. India +0.2%. London -0.6%. Paris -0.7%. Frankfurt -0.3%.
sa<>These Oversold Stocks Have Earnings Next Week
May 17, 2012 | includes: DELL, HPQ, LOW, RL
http://seekingalpha.com/article/596251-these-oversold-stocks-have-earnings-next-week
PBH<>Prestige Brands Holdings Q4 EPS From Cont. Opns., Excl. Items, Rises 44.4% To $0.26 From $0.18 Last Year
GFI<>Gold Fields Reports March Quarter Net Earnings Of $268 Mln Vs. $158 Mln Last Year
ROSG< here comes the pipe after that pop>Rosetta Genomics To Raise $2.2 Mln In Registered Direct Offering
COMMODITIES BRIEFING - Crude Oil, Gold May Recover as Greece Eurozone Exit Fears Digest - http://t.co/COHnbftm
LM Upgraded to Buy at Citigroup
Chinese Banking Regulators Announce Early Implementation of Basel III: Can They Deliver? http://t.co/t3kPpH5l
U.S. Dollar Climbed To Fresh 4-month High Of 1.0137 Against Canadian Dollar
$CHKM Upgraded to Buy at Deutsche Bank
>V Removed from Conviction Buy List at Goldman Sachs
$GDOT Downgraded to Neutral at Goldman Sachs
Gold in London determined at $1547 per ounce
VSI Downgraded to Hold at Deutsche Bank
Mish<>Brian Drain: Businesses and Brightest Minds Flee Italy; Credit Crunch Italian Style
Brian Drain
Courtesy of Google Translate, this time from Italy, please consider From the North-East and abroad, fleeing already 720 companies
Farewell, ungrateful Italy. In addition to brain drain, we'll get used to the migration of entrepreneurs. The news coming from the North-East lab are not at all encouraging.
Until 2010 no employer has had the courage to leave Italian soil. A sort of waiting anxiety that charge went through the last part of 2008 and the two following years.
Explains Daniele Marini, a sociologist at the University of Padua and the Director of the North East: "Entrepreneurs have felt a great loneliness. And 720 of them already internationalized and holding sizes above the threshold of 10 employees, in 2011 the companies have decided to move abroad.
It remains to be seen how many entrepreneurs make the same choice in 2012.
Marini argues that choice in the book "Innovator of the Border", just published by Marsilio, "In the face of an institutional environment essentially static, ie where no desired reforms take shape, the government is not modernization, the level of taxation remains unchanged, the preconditions favorable to business life are reduced to such an extent as to suggest some to place in other countries where the fiscal and administrative environment allows them to remain competitive."
It is as if suddenly the toy was broken, cracks in the same constituent elements Venetian economy: the capital first of all, based on the triad family, capital, labor. Marini explains: "The crisis has changed the DNA of the North-East. A society that puts its identity in the work today is to consider it as a hassle. The families, however thrifty and highly oriented economy, fear of not having resources available to address such a long period of recession."
The summation of all these elements outline the framework that has led entrepreneurs "secessionists" to set sail.
Credit Crunch Italian Style
Also courtesy of Google Translate, please consider The credit crunch? Ask the EBA
The solution to the crisis is growing. Virtually all agree on this. Even the Germans. The problem is that funding needed to grow. Especially businesses. But the credit supply to companies in Italy continues to be weak.
"They closed the taps, the banks have stopped doing," complained some time ago with emphasis Fancelli Mauro, president of the National Confederation of Craft Small and Medium Business in Florence.
The same bankers recognize the problem. "Not only have we reduced the new credits. But we're doing it furiously, "admits a senior executive at one of the five largest Italian banking groups.
The data reported by Mauro Fancelli for your region are dramatic: "In the first quarter of 2012 the bank has paid to Tuscan businesses for 33.5% less than the same period of 2011. The Monte dei Paschi di Siena, a leading institute in the region, has even been a decline of 70 percent."
"The worst of the credit crunch we have yet to see it," warns a second top manager at another establishment of the five largest in Italy.
With this investigation, Il Sole 24 Ore has wanted to find the reason for this phenomenon often referred to with two little words that English, along with spreads, are now common even in the chat at the bar: credit crunch - or credit crunch.
Anecdotes From Italy
My friend Francesco writes ...
Hello Mish
The banks in distress list gets longer.
Two banks on chapter 11 by Bank of Italy in a few days. Last Saturday it was the turn to the Bank Credit Cooperative Monastier and Sile suffer to be placed under protection by the Financial Regulator. Last Friday was the turn instead of Tercas bank, savings bank in the province of Teramo in the meshes of the extraordinary finish.
A customer of mine have been required to close his position with that bank, he will never be able to repay its loans to 1.5 million eur in 4 months.
I expect a very difficult summer and in September, many businesses do not reopen. German firms will detect the best companies in the north east, at a very cheap cost, the other will close in a year.
In Italy we have two realities, Germany and Greece, in the same borders. The North, particularly the North East, has a GDP per capita equal to or higher than Germany, the South is in a worse condition than Greece. Obviously you cannot find the solution without reexamining borders.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
CTRN Upgraded to Neutral at Piper Jaffray
UK's Cameron warns that a collapse of the Eurozone poses 'huge risks for everyone.'.....geez ya think?
" G'Morning, Stuffie " .. !
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DISCLAIMER:
1. DO THE MATH!!! - Before placing any trade, do the math. Where is the trigger? Where is the proper stop based on the chart setup? How many shares should I buy? This is easy to figure out. You never want to lose more than 1% of your trading account balance on any given trade. So, if you have a $30,000 account, your maximum acceptable loss on any given trade should be $300. If the stop is .20 cents below the entry price (again, based on the chart setup), then you should not buy more than 1500 shares (for the purpose of this lesson I have left commissions out of the equation for simplicity).
2. PAY YOURSELF!!! - Once you have a small profit (I use a dime as a rough personal guideline) sell part of your position and move your stop to breakeven on the rest. You will have very few losing trades if you do this, and the losses you do have will be small.
3. STOP TRADING!!! - What do I mean by this? If you hit your daily goal (everyone should have one and make it realistic) stop trading. Afternoons are tougher to trade than mornings anyway, so take the money and run....tomorrow is another day.
4. STOP TRADING!!! - Didn't we go over this already? Well, this one has another meaning. If you lose 1/2 the amount of your daily goal, stop trading and come back tomorrow. For instance, if your goal is to make $500 a day, and you are down $250 on the day, quit for the day. This is the best way to avoid falling into a 'trading death spiral'.
DOW 30 HEATMAP
http://www.stockmarketdrama.com/dow30heatmap.php
http://finviz.com/futures_charts.ashx?p=m5
This is a great free site to get some good info about technical analysis.
www.informedtrades.com/trades.php
http://stockcharts.com/school/doku.php?id=chart_school
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns
Charting tools
http://www.stockcharts.com
http://www.chartpatterns.com
http://stockcharts.com/education/IndicatorAnalysis/
http://www.investopedia.com/categories/technicalanalysis.asp
http://www.candlesticker.com/Default.asp
http://candlestickforum.com/PPF/Parameters/16_332_/candlestick.asp
http://www.incrediblecharts.com/technical/candlesticks.htm
http://www.chartpatterns.com/
http://www.investopedia.com/university/technical/techanalysis8.asp
http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators
http://www.freestockcharts.com/
http://www.barchart.com/
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