|
Post by timber on Sept 20, 2011 9:53:42 GMT -5
the dollar is down....but commodities are up telling me they are looking forward to thursday
|
|
|
Post by Clinton SPX on Sept 20, 2011 9:58:30 GMT -5
at resist Attachments:
|
|
|
Post by timber on Sept 20, 2011 10:02:46 GMT -5
bac is only up a penny now
|
|
|
Post by Clinton SPX on Sept 20, 2011 10:06:41 GMT -5
and C is red
|
|
|
Post by Clinton SPX on Sept 20, 2011 10:10:40 GMT -5
amzn not doing well today, thats odd
|
|
|
Post by ask2lern on Sept 20, 2011 11:33:50 GMT -5
I have SPY 121.69 that was acting as support once it broke above that but now it is looking like resistance so get above it on vol for a few minutes and should at least retest the highs below I have 120.94 then LOD........of course I could be wrong ;D..............GLTA
|
|
|
Post by ask2lern on Sept 20, 2011 11:36:20 GMT -5
Interesting volume on the 35 VIX calls that expire tomorrow..................
|
|
|
Post by Clinton SPX on Sept 20, 2011 11:55:19 GMT -5
everyone sure is bullish on slower growth
|
|
|
Post by ask2lern on Sept 20, 2011 11:57:22 GMT -5
everyone sure is bullish on slower growth Who needs growth when you have printing presses?..............
|
|
|
Post by herceg1967 on Sept 20, 2011 12:00:08 GMT -5
everyone sure is bullish on slower growth Who needs growth when you have printing presses?.............. I'm on-line right now to see where I can order mine.............I just want money to throw around............nothing better to do........ JMO and BOL...............
|
|
|
Post by crumbdon on Sept 20, 2011 12:04:55 GMT -5
WFC a mule today- trying to carry all the other @#*!pile banks on its back. It's almost working. A few of the other turds going green now.
My FAZ position is nervous.
|
|
|
Post by Clinton SPX on Sept 20, 2011 12:11:47 GMT -5
GM BIDU AMZN all down more than 1%
|
|
|
Post by ask2lern on Sept 20, 2011 12:27:25 GMT -5
WFC a mule today- trying to carry all the other @#*!pile banks on its back. It's almost working. A few of the other turds going green now. My FAZ position is nervous. Give it a hashish brownie and tell it to chill it will be fine........... ;D
|
|
|
Post by Clinton SPX on Sept 20, 2011 12:50:05 GMT -5
This is from the WSJ sept 9th The possibility of the Federal Reserve invoking "Operation Twist" to stoke more borrowing and economic activity has many in the retail banking industry uttering expressions of pain.
Fed Chairman Ben Bernanke, hoping to instill confidence in the economy and foster growth, has repeatedly said the central bank has options to help. One cited by The Wall Street Journal on Thursday, and the subject of market eagerness, is lowering long-term interest rates—so-called Operation Twist, which wouldn't lower short-term rates. The idea is that lower long-term rates might lead to more borrowing and economic activity.
Bloomberg News Fed Chairman Ben Bernanke
But for bankers, who are already struggling with low interest rates on loans and tepid loan demand, the twist option could further dent already-weakened profits. That is because lower long-term interest rates would result in contracting net interest margins for banks—essentially, the profit margin in the lending business—at a time when their revenue is growing slowly, if at all. Banks would earn less on loans and investments, and might end up making fewer loans as well.
"Ouch" is how one executive at a big retail bank described the prospect of Operation Twist. (Bankers typically don't publicly comment on Fed policy given the central bank's role as a bank regulator.)
A twist would seek to flatten the yield curve, or the slope between long- and short-term rates. For banks, the steeper the yield curve the better, because bankers borrow short-term funds to make loans that have much longer terms.
Even without the Fed doing the twist, bank profit margins from loans are already under pressure. The Federal Deposit Insurance Corp. reported that second-quarter net interest margins declined at nine of the 10 largest banks. Overall, half of all banks reported contracting margins, the FDIC said: Revenue "was lower than a year ago for the second quarter in a row" because of "lower asset yields," despite a 2.8% rise in commercial and industrial loans.
To be sure, banks might have some options to counteract the twist. "Banks could try increasing deposit fees to offset the actions, this would make effective rates less than zero," said Frederick Cannon, the director of research and chief equity strategist at Keefe, Bruyette & Woods Inc.
Indeed, banks have so far been able to lower deposit rates, particularly on maturing certificates of deposits made at the height of the financial crisis, to somewhat offset declining interest rates on loans.
But further declines in loan pricing would have painful consequences; banks already offer 30-year fixed-rate mortgages at 4.125% interest, a historic low.
Mr. Cannon said banks would eventually be able to charge higher rates if lower interest rates generated more demand for loans and a stronger economy.
"Of course, if the Fed is successful in supporting a faster return to economic growth, that would have other benefits," said the retail bank executive who cited an expression of pain at the prospect of a twist.
But some economists have doubts. Banks say they are having trouble finding enough credit-worthy borrowers to make use of their deposits. Instead, they are buying Treasury securities, an investment that would yield less under "operation twist."
The U.S. economy "is in a bit of a liquidity trap," meaning it is in a position where the Fed's monetary policy has little impact on the economy, said Scott A. Anderson, a senior economist with Wells Fargo Securities. "Money isn't getting out to Main Street USA." No matter how attractive rates on loans are, "demand is going to be weak because there isn't enough confidence" in the economic recovery, Mr. Anderson said.
If yields fall due to a twist operation, bankers might even curb lending if demand for loans remain weak. But if the Fed succeeds in stimulating borrowing, loan "volume will win the day," he said.
Richard J. DeKaser, the deputy chief economist at Parthenon Group, who, as chief economist at National City Corp. helped the regional bank with its interest-rate management before it was bought by PNC Financial Group Inc., said making home purchases more attractive by lowering long-term rates will have a positive impact on the economy and banks.
But he said the Fed may not need twisting to get mortgage rates down—they are already falling.
|
|
|
Post by timber on Sept 20, 2011 13:15:15 GMT -5
71 percent of the economists believe operation twist this week
|
|
|
Post by Clinton SPX on Sept 20, 2011 13:17:32 GMT -5
fin short scalp here
|
|
|
Post by crumbdon on Sept 20, 2011 13:40:48 GMT -5
WFC a mule today- trying to carry all the other @#*!pile banks on its back. It's almost working. A few of the other turds going green now. My FAZ position is nervous. Give it a hashish brownie and tell it to chill it will be fine........... ;D You're right! Worked beautifully! Exalt! (I would also give a thumbs-up, but my muhputer seems to have banished them today)
|
|
|
Post by Clinton SPX on Sept 20, 2011 14:06:17 GMT -5
|
|
|
Post by maxi on Sept 20, 2011 14:08:32 GMT -5
71 percent of the economists believe operation twist this week SHORT SHORT SHORT!
|
|
|
Post by Clinton SPX on Sept 20, 2011 14:12:35 GMT -5
GLD isnt rallying no fear?
|
|
|
Post by Clinton SPX on Sept 20, 2011 14:18:27 GMT -5
Interesting volume on the 35 VIX calls that expire tomorrow..................
|
|
|
Post by crumbdon on Sept 20, 2011 14:29:04 GMT -5
Funny- yesterday and today have felt way more like OPEX week to me than last week ever did. Hmmmm...can't wait to see what tomorrow brings, hee hee!
|
|
|
Post by Clinton SPX on Sept 20, 2011 14:35:24 GMT -5
GLD showing signs of life now
|
|
|
Post by huh? on Sept 20, 2011 14:36:19 GMT -5
Just need that computer buy program to kick in now. You know that one that kicks in at 3:40pm everyday lately?
|
|
|
Post by novice08 on Sept 20, 2011 14:55:05 GMT -5
Looks like to me they want to close her flat. Gold taking off in the last 30 minutes.
|
|
|
Post by Clinton SPX on Sept 20, 2011 14:59:34 GMT -5
|
|
|
Post by Rich on Sept 20, 2011 15:08:37 GMT -5
like I said, nice call clinton
|
|
|
Post by elle on Sept 20, 2011 21:58:35 GMT -5
sorry, haven't been here much, so reporting in:
$$ flos 3 positive
buy for 11:30, but sell into Thursday
cheers!
|
|