As we said in a premarket note this morning to subscribers, several of our volatility-based indicators flashed buy signals, and after the morning washout, markets rallied back above yesterday’s lows. Today’s signal was good for at least 11 S&P futures points off the open, and we expect to see a bit of positive follow-through next week.
The headline story of 2008 is still holding true: a rally in financial stocks is still a necessary but not a sufficient condition for a…
Back on June 4, we suggested some relatively conservative ways to play the potential downside in Lehman Brothers (LEH). Since we published that piece, the stock has dropped more than 13% to 27.20, and with earnings now behind us it’s time to revisit these positions.
LEH July 40/42 call vertical – we initially sold this vertical for a credit of $0.34. You could buy it back right now for about $0.05, locking in a gain of 17.46% return on capital risked. Since…
[Members, be sure to check in for the weekend portfolio update.]
The Financial Times has a fascinating interactive map of key oil players and movements.
Roger Nusbaum profiles one of several forthcoming frontier ETFs. For when BRICs get too boring, you can own some Poland, Chile, and Egypt.
Greg Feirman wonders whether Lehman really is bankrupt; in Barron’s, Steven Sears notes that the premiums in LEH options “show that investors think the stock is more than twice as risky as the overall financial sector.”
It’s kind of…
Friday, September 5, 2008
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