Thursday, December 10, 2009

$19B Here $20B There

Pretty soon it adds up to big money.  I am talking about the capital raises by BAC and C.  BAC raised $19B through selling equity.  C is looking to raise $20B doing the same thing.  From a broader prospective, these capital raises soon add up to a lot of supply weighing down the market.  We are still in a tight range and yesterday's trade just reinforced that.  With the gap up, I believe we'll get some bulls to jump on board and drive us a bit higher.  But I don't think it will last.  Gold and crude oil are telling me that this market is weakening, and with very few bears according to Investor's Intelligence, I would be cautious on the long side.

5 comments:

  1. Shorted around 1105.
    Market Owl, What's your say about today ?
    Think we're going to break 1100 support downside, or not ?

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  2. SOLD 60% OF BGP @ $1.52

    -OL' DAWG

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  3. Sold other 40% of BGP $1.54

    HOLLA

    -OL' DAWG

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  4. I would short at roughly 1110 SPX

    -OL DAWG

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  5. I think shorting anywhere around 1105 will make money. I am sort of neutral on today's trade. I think we'll go back down to 1085 on Friday or Monday.

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