Before the Open (May 30)

Good morning. Happy Wednesday.
First the important news. Naked Pizza is opening its first location in Chicago today. My brother has the franchise rights in the city. He and his team will be opening 8-10 locations in the next couple years. If you’re in Chicago, check it out (953 W. Diversey Pkwy). Here are a few of the write-ups in the local media. metromix redeye q101. :))

Moving on…
The Asian/Pacific markets closed mostly down. Hong Kong lost almost 2%, Taiwan more than 1%. Europe is pretty much down across the board. Greece is down more than 3% and France, Stockholm and London around 1%. Futures here in the States point towards a large gap down from the cash market.
The dollar is up. Oil and copper are down more than 1%. Gold and silver are down.
Spain remains a top headline story. 10-year borrowing costs hit 6.67% – close to the level at which Ireland and Greece needed bailouts.
10-year yields in Italy topped 6% for the first time this year.
The euro dropped to its lowest level in two years.
RIMM has hired JP Morgan and RBC to advise it on its “options.” This means the company will be chopped in pieces and put on the selling block. It’s phone business is worthless (they posted an operating loss in the first quarter), but its patent portfolio is definitely worth several billion dollars…ergo the company is worth more dead than alive.
The market did well yesterday. Spain was downgraded. The market initially sold off, but buyers eventually stepped in and pushed prices back to their intraday highs. When the market can shrug off bad news and move up, it’s a sign the downtrend may be close to an end. But it won’t be easy. Technically there’s a big block of overhead supply to contend with and Europe still rules the day. Hence there’s lots of uncertainty in the near term.

Be conservative in the near term. More after the open.
headlines at Yahoo Finance
headlines at MarketWatch
today’s upgrades/downgrades
this week’s Earnings
this week’s Economic Numbers

0 thoughts on “Before the Open (May 30)

  1. RIMM’s “patent portfolio is definitely worth several billion dollars”.
    According to a RIMM analyst, only after RIMM goes through bankruptcy.
    Most of RIMM’s patents are licensed to other companies.
    RIMM must go through bankruptcy to break the licenses (this is how Palm and others did it).

  2. uncle benanke has to fight a falling euro and its bearish implications for the equity markets world wide
    my next target for euro is 1.18
    come on china –i want some bull to short,or am i doomed to being a daytrader for ever–lol

  3. we will have to get Pete to tell the fed ,when to expect a elliott wave 2 bounce,so the plunge protection team can go to work
    but the fed is only as good as it has the support of the instos,whom dont look like they have finished selling yet

    1. will spx 1311 do u Russ,but imo selling will end at london ftse 5000 and german dax 6000,but only a opinion for another day–not fact

  4. the bigest tick indicator negative extreme i have seen in a long while
    have the instos exhausted their selling
    price showing relative strength compared to tick

  5. all the bulls in spain have turned into forochious bears
    does my exhileration indicate we may be ready for a bounce
    or perhaps a alien spaceship is coming to take me away

  6. imo world indexes or futures are much more fun to trade than individual shares
    with indexes u only have to worry about bumbling uncle ben of the fed opening his
    irrational exhuberant mouth

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