Financials - Oct 26,2009
Sunday, October 25, 2009
by PitGuru.com Authors of PitGuru.com
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The Financials Pit Review For the week of October 26th, 2009 By PitGuru Frank LaMantia S&P & Currencies ING seems to be simplifying itself by splitting its bank and insurance units and will be selling its asset management arm. Obviously, they were a main focus during the crisis and are trying to rectify their company’s business plan.1 Traders reacted negatively, but in actuality this could be a positive move but will have to wait to see how it all pans out. Verizon earned .60 per share beating estimates of .59 cents per share, but profits were down about 13 million from last year at this juncture.2 I think the conversation of phone usage has come up in many homes across the world. Do people really need to spend an extra $20 a month on text messages? The phone industry will sometimes trade along with what the consumers mind set is at that particular moment. The industry may bounce back in time as the economy lifts out of the recession. Corning posted good earnings due to glass being sold to the makers of televisions.3 Apparently, consumers like the prices of the flat screens and are buying them. Radio Shack annoys me and should just realize that it can't compete with Best Buy or any other company in its field. Again, they miss estimates and post 39 million in revenue which is down 12 million from last year at this juncture.4 The S&P is trading at 1078.0 and could trade in the range of 1056-1099 for months. Remember, the recovery period for a recession could stretch 5-7 years and is known to have choppy trading and a somewhat blurry path. This week has Durable Orders, Consumer Confidence, GDP, Personal Income, and Personal Consumption. As the week moves on I will talk about earnings of companies that might impact the trading week. The middle of the week seems to have companies that could make a difference in day trading. The USD Index is down small today, -.09 to 75.38 and is holding its ground even though the Euro keeps inching up to new yearly highs of 1.5021. Beijing reported that it wants to put Euros in their holdings which evidently sent the dollar down and the Euro up.5 1http://finance.yahoo.com/news/ING-to-split-itself-issue-apf-507096423.html?x=0&sec=topStories&pos=1&asset=&ccode=
2http://albany.bizjournals.com/albany/stories/2009/10/26/daily3.html
3http://www.google.com/hostednews/ap/article/ALeqM5iFVP-O7uhYTCpIAXgeWCBY1tsYcAD9BIQM8G5
4http://www.marketwatch.com/story/radioshacks-profit-slumps-24-margins-improve-2009-10-26
5http://www.cnbc.com/id/33475371 
***chart courtesy Gecko Software’s Track n’ Trade Pro Past performance is not necessarily indicative of future results.
Recent articles from this author
- Metals - Mar 08,2010 - Sunday, March 07, 2010
- Softs - Mar 08,2010 - Sunday, March 07, 2010
- Grains - Mar 08,2010 - Sunday, March 07, 2010
- Financials - Mar 08,2010 - Sunday, March 07, 2010
- Energies - Mar 08,2010 - Sunday, March 07, 2010
About the author
Daniel Cronin - PitGuru.com's Energies & Metals Guru Daniel Cronin has spent years on the floor of the Nymex as part of one of the largest energy floor brokerages in the business. His extensive experience stems from not only his Pit background but also through intense studying and implementation of complex technical analysis and market trading techniques via the mentorship of the now retired Ralph Acampora. Mr. Cronin brings subscribers a rare combination of book smarts and real world trading experience in one of the most volatile market sectors in the futures industry. Matthew Pierce - PitGuru.com's Grains Guru Mr. Pierce is a unique acquisition for Futures Press Inc. in that he has an unmatched level of real hands-on experience within the industry in addition to his floor trading expertise and top notch education at the University of Illinois College of Agriculture. Matthew has literally cultivated the perfect professional career as a grain expert by working with the industry's most recognizable companies such as Cargill, LaSalle Group, Conagra, Walsh Trading Inc. and many more. In addition to trading on the floor of the Chicago Board of Trade, Mr. Pierce writes what many in the business believe to be the best kept secret amongst trading reports available in the industry. Jurgens H. Bauer - PitGuru.com's Softs Guru Jurgens owns and operates his own order execution firm on the ICE trading floor. He has been a member since 1987. His firm, Jurgens Bauer and Associates, specializes in executing option orders for a wide array of customers and a variety of industry participants, including individual speculators, funds and members of the trade. While Jurgens has been an active member of the trading community he has also spent time since 2000 working at raising awareness of environmental commodities, educating industry professionals on emissions trading, brokering transactions between private counter parties and developing SO2 and NOx contracts for the NYMEX. Frank LaMantia - PitGuru.com's Financial Guru Soon to be Dr. LaMantia, Frank is not only one of the most educated traders on Wall Street, but also maintains an industry resume of substance and depth. Frank has worked extensively on an Institutional preferred stock syndicate desk, as a government bond specialist, and as a financial advisor all the while achieving multiple licenses in the finance field. With an extensive and impressive client list (including Citibank, Bear Stearns, Lehman Brothers, AG Edwards, Mesirow, UBS, and numerous Hedge Funds), Mr. LaMantia brings his one-of-a-kind background to his current occupation of full time trader.
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