Nouriel Roubini: Growth Will Remain Anaemic

"Savings will have to rise faster than consumption for the coming years. That is why growth will remain anaemic"

Nouriel Roubini from RGE Monitor, at a seminar in Sao Paulo

Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY) and iShares MSCI Emerging Markets Indx (ETF) (Public, NYSE:EEM)

David Rosenberg: We Are In A Disinflation Trend.

“For those who have ongoing problem with how the government treats the consumer price index, there is a metric that is tried, tested and true, which is the market-based core PCE price index (the core excludes food and energy). This metric was released yesterday and it eked a 0.3% QoQ annualized increase (basically flat) which was a record low for this particular data series. The YoY trend, depicted below, slowed to an 11-year low of 1.2% in Q1 from 1.7% in Q4 and 2.1% a year ago. The disinflation trend is unmistakable and augurs for income-based investment strategies.”

David Rosenberg

Related: ProShares UltraShort 20+ Year Trea (ETF) (Public, NYSE:TBT), iShares Lehman 20+ Year Treas.Bond (ETF) (Public, NYSE:TLT) and SPDR Gold Trust (ETF) (Public, NYSE:GLD)

Bearish Sentiment May Signal Bottom On The S&P 500

Source: Bespoke Investment Group

Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY) and ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS), iShares Russell 2000 Index (ETF) (Public, NYSE:IWM)

Great Market Call From Barton Biggs

Barton Biggs was dead right this time. He has been accused of being a perma bull over the years but the timing of his most recent call was perfect. He saw the short squeeze coming but he sees the market going much higher:

“The market is very, very oversold, and I think we’re going to have a big pop to the upside some time in the next couple of days. I wouldn’t be surprised to see us go to a new recovery high, just to make everybody squirm.”

Barton Biggs, May 26

Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY) and ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS), iShares Russell 2000 Index (ETF) (Public, NYSE:IWM)

Jeffrey Sachs: The US Needs An Austerity Plan

"Greece needs an austerity plan, so needs the United States and the UK. Let`s do that."

Jeffrey Sachs is an American economist and Director of the Earth Institute at Columbia University.

Related: ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS) and SPDR S&P 500 ETF (Public, NYSE:SPY)

Hugh Hendry: The Most Eccentric Hedge Fund Manager

The most eccentric hedge fund manager in the financial community shares his insights on the markets.

JP Morgan Gives You The Best Tactic For Today`s Market

"Keeping tactical risk low is obvious. Investors with staying power should start buying oversold assets, though, without being in a hurry. Remaining positions should be focused on non-consensus exposures.

Keep risk tight, we’re avoiding consensus trades where feasible, but not giving up on medium-term bullish view on risky assets."

Source: JPMorgan Chase & Co. (Public, NYSE:JPM)

Worst Market Call Of The Year Goes To....Art Cashin.

This is my favourite market call this year:

"The rally is long in the tooth, but we’re getting new high readings and new 52-week highs and so even if the rally’s a little old, the market technicals are quite strong and nowhere near signaling that you’re near a top."

Art Cashin, CNBC on April 26

Full Article: Art Cashin: Markets Are Nowhere Near A Top

Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY) and ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS)

Mark Mobius: This Is A Correction In A Bull Market

“Despite the fact that a lot of people think that we are entering into a bear market, we don’t believe so. This is a correction in an ongoing bull market. When the time comes, emerging markets will recover faster and in a big way. We’ve been buying because we have had net flows into our funds. And most of the buying has been in the BRIC countries.”

Mark Mobius, Templeton Asset Management

Related: iShares MSCI Emerging Markets Indx (ETF) (Public, NYSE:EEM), iShares MSCI Brazil Index (ETF) (Public, NYSE:EWZ), Market Vector Russia ETF Trust (Public, NYSE:RSX), iShares FTSE/Xinhua China 25 Index (ETF) (Public, NYSE:FXI), The India Fund, Inc. (Public, NYSE:IFN)

Credit Suisse Gives You 5 Reasons To Be Bullish

1) Market is too pessimistic on global macro outlook: the collapse in bonds yields, along with this week’s decline in the gold price and yesterday’s sell-off in the Australian dollar versus the Yen (7%), suggests that markets are discounting a big deflationary shock. Yet, we do not see this. All the best lead indicators are strong, though they will likely roll-over owing to stock market weakness. The global PMIs are consistent with 4% GDP growth (see page 5 for all charts) and the best two lead indicators of US growth – ISM new orders and consumer confidence expectations – are consistent with growth about 3%. Our economists forecast global GDP of 4.4% next year (2.4% in Europe and 2.9% in the US).

2) Valuation: The US equity risk premium (ERP) is 6.1% if we just use two-year forward IBES numbers and then revert earnings to trend (see Figure 7 below). The long-run average ERP is 3.5%, while our target (or warranted) ERP is 4.5% (the warranted equity risk premium depends on ISM and credit spreads – and assumes a modest deteriorating in both: ISM falling to 55 from 60 and BAA spreads widening to 3% from 2.4%- clearly if we were assuming a recession then ISM would fall to 40 and the BAA spread widen to 5% and the target equity risk premium would rise to 6.2% but as stated already we are not assuming a recession). Even if we revert S&P 500reported earnings back to their post-1920 trend of $64 (compared to 12-month forward operating earnings of $87.5), the ERP is now 4.5%, almost at our target level.

3) We note that the CDX HY spread at 670bps, is only 0.4 standard deviations above its average, the same level it was at when the S&P 500 was at 1,300. Furthermore, the 5 year / 5 year forward inflation rate is 2.2%, versus a crisis low of nearly zero.

4) Global earnings revisions are at an all-time high (see Figure 23 below). Consensus revenues estimates are, we think, still too low. For Europe as a whole consensus revenue is 5% below nominal GDP in 2009 and 2010 when aggregated and more so for cyclical sectors. Additionally, the weakness of the Euro, if it hits €/$1.20, should directly and indirectly add nearly 14% to European EPS as well as 1% to GDP. To gauge how worried the markets are about earnings, we can look at dividend swaps market, which are discounting a 13% decline in DPS between end 2009 and 2013 in Continental Europe (and a 4% rise in the UK). This seems too pessimistic too us.

5) Investors are still conservatively positioned we think. Mutual funds have 45% of their total assets in equities compared to a long-run average of 51%. Money market funds are still 20% of market cap (versus a long-run average of 18%). Since the low in the equity market, we have seen retail buy 99bn of bonds, while they sold $88bn of equities.

Source: Credit Suisse

Related ETF: SPDR S&P 500 ETF (Public, NYSE:SPY), PowerShares QQQ Trust, Series 1 (ETF) (Public, NASDAQ:QQQQ), iShares Russell 2000 Index (ETF) (Public, NYSE:IWM)

Existing Home Sales Data: Continuing Rise In Inventories Is A Concern

"A positive read on actual sales was largely expected for this month as the home buyers tax credit ended in April, but the continuing rise in inventories is further concern that the shadow inventory will continue to come on the market in the coming months. We have detailed the outlook for housing and continue to believe the pressures are mounting in real estate. Today’s surge in inventories is worrisome to say the least. Home sellers are clearly trying to sell into the brief strength we’ve seen in housing. The massive supply on the market is not a good sign for what is likely to be lower and lower demand as the year wears on."

in The Pragmatic Capitalism

Related stocks: Lennar Corporation (Public, NYSE:LEN), D.R. Horton, Inc. (Public, NYSE:DHI), Toll Brothers, Inc. (Public, NYSE:TOL), PulteGroup, Inc. (Public, NYSE:PHM)

David Rosenberg: Stock Market Outlook

"The equity market is technically oversold right now and is due for a near-term bounce, but that would be a rally that I would fade if we see it. There has been too much of a rupture to ignore with the S&P 500, Dow and Nasdaq all closing below their 200-day moving averages (fist time in almost a year for the Nasdaq). There were only 11 new highs yesterday and 212 new lows, so this ratio is still quite bleak. Decliners/advancers were also 11-to-1 on the major exchanges. This is what I mean by rupture.

On average, corrections that take place after such a massive move up from a depressed low is 20%, which would mean that we could expect to see the S&P 500 still test the 970 level; with a prospect of a second-order Fibonacci retracement implying a move below 950. Remember that before the last big leg up in the market last summer, the S&P 500 was hovering around the 920 level, which is my target to begin getting interested again.

A 10% correction, even in a bull market, is pretty normal, and historically has occurred about every 12 months — and tends to occur more in the second year of a rebound, or bull market, than in year-one. So the European debt crisis is certainly the catalyst for this renewed round of risk aversion, but is not out of line with market patterns over the past century.

Two critical data points to watch for — the May 6 flash-crash intraday low of 1,065 on the S&P 500, followed by the 1,044.5 low on February 5. If these don’t hold, and the bulls need these levels to hold, then another leg down to or through the 950-970 levels is likely."

Source: David Rosenberg, Gluskin Sheff

Related: SPDR S&P 500 ETF (Public, NYSE:SPY), ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS), PowerShares QQQ Trust, Series 1 (ETF) (Public, NASDAQ:QQQQ)

Goldman Sachs (GS): Still Bullish, This Is A Normal Correction

Goldman Sachs (GS) remains very bullish on US equities,

“Developments over the past two weeks have not altered our fundamental view. The market has plunged 12% in four weeks, but remains 60% higher than in March 2009. The pull-back has been consistent with sell-offs that occurred in recoveries following bottoms in 1974, 1982, 1987, 1990 and 2002. The correction has been orderly in that sector returns have been exactly in-line with beta-adjusted expected performance.”

They expect a mid-year rally to 1300 and then a minor correction to end the year at 1250,

“We expect the S&P 500 to rise to 1300 by mid-year (+21%), before ending 2010 at 1250 (+17%).”

Related: Goldman Sachs Group, Inc. (Public, NYSE:GS)

Leading Indicators Turn Negative

Yesterday the Conference Board released the Leading Economic Indicators (LEI) for the month of April, showing that its leading economic indicators index unexpectedly declined for the first time in more than a year.

The report showed that the leading economic index edged down by 0.1 percent in April following a downwardly revised 1.3 percent increase in March. The decrease came as a surprise as the consensus estimate was for the index to increase by 0.2 percent.

Related ETF`s: Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY), ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS), PowerShares QQQ Trust, Series 1 (ETF) (Public, NASDAQ:QQQQ), United States Oil Fund LP (ETF) (Public, NYSE:USO)

Doug Kass: Turning Bullish On US Stocks

"As stocks drift lower, skepticism ascends and shorts mount up, fear should be seen as the friend of the rational investor, and many stocks that I follow are approaching or are already at attractive price levels. While most are now fearful, especially those who base their investment decisions on price momentum, I view individual stock opportunities on a fundamental basis, and based on my company contacts and channel checks, the domestic expansion is alive and well. It is interesting to note that the U.S. real private economy does benefit somewhat from slowing developed world (European) growth in the form of lower interest rates and lower commodity prices (especially of an energy kind)."

Doug Kass, in The Street.com

Doug Kass is turning bullish on stocks and sees 15 percent upside for the S&P 500 Index.

Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY), PowerShares QQQ Trust, Series 1 (ETF) (Public, NASDAQ:QQQQ)

Only 7 Percent Of S&P 500 Stocks Above Their 50 Moving Average

Bespoke highlighs the ultra oversold nature of the S&P 500 Index:

"One day in early April, 93% of stocks in the S&P 500 were trading above their 50-day moving averages while 7% were below their 50-days. Now the exact opposite is true -- 7% are above their 50-days, while 93% are below. And just like the reading rarely stays above the 90% level for long, it also rarely stays below the 10% level. As shown in the chart below, the indicator is currently at its lowest level since March 2009 when it hit 5%."

in Bespoke Investment Group

Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY), ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS), PowerShares QQQ Trust, Series 1 (ETF) (Public, NASDAQ:QQQQ)

Roubini: Stocks Will Fall Another 20 Percent

Stocks are likely to continue their aggressive decline and shed another 20 percent as the world economy weakens, economist Nouriel Roubini told CNBC:

"There are some parts of the global economy that are now at the risk of a double-dip recession. From here on I see things getting worse. There is that risk because the problems on the macro level are first in the euro zone. Then in China there is evidence of economic slowdown...Japan is in trouble and US economic growth is going to slow down. There is also regulatory risk because we don't know how financial reform is going to occur. Apart from cash I would invest in short-term government bonds of countries that don't have a serious debt problem, countries like Germany and maybe Canada, a few other advanced economies that from a fiscal point of view are sounder than the weaker economies"

Related: SPDR S&P 500 ETF (Public, NYSE:SPY), ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS)

S&P 500 Index Is Testing Its 200 Day Moving Average

The S&P 500 Index is currently testing its 200 day moving average.

(from bespoke investment group)

Related: SPDR S&P 500 ETF (Public, NYSE:SPY), ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS)

We Are Oversold. But Not Enough To Buy, Yet.

The US stock market is oversold, but not at a historical buying opportunity yet.

Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY), ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS), iPath S&P 500 VIX Short Term F (Public, NYSE:VXX)

Nouriel Roubini: The US Will Also Face Bond Vigilantes

“Bond market vigilantes have already woken up in Greece, in Spain, in Portugal, in Ireland, in Iceland, and soon enough they could wake up in the UK, in Japan, in the United States, if we keep on running very large fiscal deficits. The chances are, they are going to wake up in the United States in the next three years and this is unsustainable.”

Nouriel Roubini, London School of Economics, May 18

Related ETF`s: ProShares UltraShort 20+ Year Trea (ETF) (Public, NYSE:TBT), iShares Lehman 20+ Year Treas.Bond (ETF) (Public, NYSE:TLT)

Meredith Whitney: Avoid Banks At All Costs

Meredith Whitney, the star banking analyst is very bearish on the banks. She told CNBC:

"Politicians have proven far worse than our worst expectations.It could be very bad for banks."

"Some of these regulatory proposals are going to make it so difficult for everyone involved that you'll see, I think, at least another 1.3 trillion dollars of credit sucked out of the system. It's going to make accessing capital so difficult for pockets of the country, particularly for small businesses that often depend on credit cards for funding."

Investors should avoid financials at all costs, because the Senate's financial reform bill will end up restricting credit and hurt bank earnings, Meredith Whitney told CNBC. Whitney added European banks are in even worse shape than their US counterparts

Related: Goldman Sachs Group, Inc. (Public, NYSE:GS), Bank of America Corporation (Public, NYSE:BAC), JPMorgan Chase & Co. (Public, NYSE:JPM), Citigroup Inc. (Public, NYSE:C), Visa Inc. (Public, NYSE:V), MasterCard Incorporated (Public, NYSE:MA), American Express Company (Public, NYSE:AXP)

Paulson And Soros Betting On Boston Scientific (BSX)

Boston Scientific Corporation (Public, NYSE:BSX) is one of the largest holdings at Paulson & Co. At the end of the first quarter, his fund was holding 715 mln shares of Boston Scientific Corporation (Public, NYSE:BSX).

According to CNBC, George Soros` fund also increased its stakes in Boston Scientific Corporation (Public, NYSE:BSX) in the first quarter.

The stock is trading near its 52 week low and a multi year low. Is this a great buying opportunity? The stock`s 52 week range is 6.4 - 12.

Meredith Whitney: If We Don`t Lend To Small Businesses, We Will Have Tragic And Dangerous Unemployment

"Unless real focus is afforded to re-engaging small businesses in this country, we will have a tragic and dangerous unemployment level for an extended period of time. Small businesses fund themselves exactly the way consumers do, with credit cards and home equity lines."

Meredith Whitney

Related: Visa Inc. (Public, NYSE:V), MasterCard Incorporated (Public, NYSE:MA), American Express Company (Public, NYSE:AXP) and Bank of America Corporation (Public, NYSE:BAC)

Volatility Is Really Picking Up

This excellent chart from Bespoke Investment Group shows how volatility has really been picking up.

Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY), ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS), iPath S&P 500 VIX Short Term F (Public, NYSE:VXX)

David Rosenberg: The VIX Signals Trouble

"The behavior of the VIX index has recently been consistent with either the tail end of a bull market in equities or the onset of a new bear phase"

David Rosenberg, Market Strategist, Gluskin-Sheff

Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY), ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS), iPath S&P 500 VIX Short Term F (Public, NYSE:VXX)

Dennis Gartman: The Euro Will Be Punished

“The ECB’s supposed independence has now been shown to be nothing more than a sham, a chimera, a will-o’-the-wisp. In the end the ECB and the euro will be punished for this decision to stand down from what had previously been considered sacred.”

Dennis Gartman, economist and hedge- fund manager, publisher of the Gartman Letter

Related ETF`s: PowerShares DB US Dollar Index Bullish (Public, NYSE:UUP), PowerShares DB US Dollar Index Bearish (Public, NYSE:UDN), SPDR Gold Trust (ETF) (Public, NYSE:GLD)

Art Hogan: Seadrill (SDRL) Is The Stock Pick Of The Week

Art Hogan advised investors to look into Seadrill Limited Ordinary Shares (Bermuda) (Public, NYSE:SDRL),

“It’s an ultra deepwater rig company that has very little exposure to the Gulf of Mexico,” he said of the firm. “We’re seeing incremental pickup in demand—and while you’re waiting for the demand, you’re getting paid a 9.5 percent dividend.”

Art Hogan, Global Equity Product Director at Jefferies


Art Hogan has been recommending stock picks for a one week holding period on CNBC.

Cisco Systems` CEO: Wait For Additional Economic Data Before Becoming Too Optimistic

"Given all the uncertainties regarding the strength and shape of the recovery, concerns about the recovery possibly slowing and the unknown extent of job creation, we encourage you to wait for additional economic data before becoming too optimistic."

John Chambers, Cisco Systems CEO

Shares of Cisco Systems Inc. fell Thursday, a day after the technology giant posted a 63% surge in profit, but issued a forecast that analysts considered cautious, even unimpressive.

Related Stock: Cisco Systems, Inc. (Public, NASDAQ:CSCO)

Marc Faber: The Next Crisis Will Really Shake The System

"The next big crisis will really shake up the system. But the next crisis may be coming in 5 to 10 years time. And between if you print enough money, markets could go up very strongly."

Marc Faber, publisher of The Gloom, Boom And Doom Report

Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY) and ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS)

El-Erian: Excessive Money Printing Will Lead To Inflation In The Medium Term

"Extensive money printing by central banks to buy securities in emergency measures, such as those the European Central Bank recently announced to stabilize euro zone government bond markets, will ultimately stoke inflation.

This potential evolution from disinflation to inflation will likely proceed at different speeds in different parts of the globe. It is already well in train in emerging economies and will remain so."

Mohamed El-Erian, CEO and co-CIO of Pacific Investment Management Co. (PIMCO)

Related ETF`s: ProShares UltraShort 20+ Year Trea (ETF) (Public, NYSE:TBT) and iShares Lehman 20+ Year Treas.Bond (ETF) (Public, NYSE:TLT)

No Losing Trading Days At C, BAC, GS And JPM. How Is That Possible?

"Despite the running unease in world markets, four giants of American finance managed to make money from trading every single day during the first three months of the year.
(...)Bank of America, Citigroup, Goldman Sachs and JPMorgan Chase & Company produced the equivalent of four perfect games during the first quarter. Each one finished the period without losing money for even one day."

in WSJ

Related Stocks: Goldman Sachs Group, Inc. (Public, NYSE:GS), Bank of America Corporation (Public, NYSE:BAC), JPMorgan Chase & Co. (Public, NYSE:JPM), Citigroup Inc. (Public, NYSE:C)

Templeton: Chinese Stock Market Has Reached Its Bottom For The Year

“The market has reached its bottom this year and is poised for a rebound. Recent declines are overdone and further tightening measures such as interest-rate increases are already priced in.”

Xu Lirong, Franklin Templeton Sealand Fund Management Co, Shanghai

Related stocks and ETF`s: Morgan Stanley China A Share Fund, Inc. (Public, NYSE:CAF), iShares FTSE/Xinhua China 25 Index (ETF) (Public, NYSE:FXI), PowerShares Gld Drg Haltr USX China(ETF) (Public, NYSE:PGJ), Aluminum Corp. of China Limited (ADR) (Public, NYSE:ACH), China Mobile Ltd. (ADR) (Public, NYSE:CHL)

Time To Buy China Stocks?

David Faber`s analysis on the chinese economy.

The Shanghai Composite Index entered in bear market territory. Is it time to start buying chinese shares?

Related stocks and ETF`s: Morgan Stanley China A Share Fund, Inc. (Public, NYSE:CAF), iShares FTSE/Xinhua China 25 Index (ETF) (Public, NYSE:FXI), PowerShares Gld Drg Haltr USX China(ETF) (Public, NYSE:PGJ), Aluminum Corp. of China Limited (ADR) (Public, NYSE:ACH), China Mobile Ltd. (ADR) (Public, NYSE:CHL)

Barton Biggs: The Next Move In US Stocks Will Be Up 15 To 20 Percent

“I’m betting the next move in the U.S. market is going to be up 15 to 20 percent. I would just point out that the world is having a strong economic recovery, and so is Europe.”

Barton Biggs, Traxis Partners LP in Bloomberg TV

Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY) and ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS)

Goldman Sachs (GS): The S&P Will Rally To 1300 Regardless

Goldman Sachs (GS) expects the S&P 500 to rally to 1300 and Greece won`t prevent the rally to keep on going:

"Goldman Sachs isn’t backing down from their very bullish call of S&P 1,300 by mid-year. Their analysts say the Greek debt woes are unlikely to halt the strong global recovery. Specifically, they highlight the continuing low valuations, stronger than expected earnings, robust recovery and positive money flows. Last week’s strong labor report and robust ISM readings were unjustly ignored in their opinion. They expect the robust earnings recovery to continue into the back half of 2010 and still find the market attractive based on valuations"

in The Pragmatic Capitalist

Related Tickers: SPDR S&P 500 ETF (Public, NYSE:SPY), ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS) and Goldman Sachs Group, Inc. (Public, NYSE:GS)

European Bailout: Interesting Reading

Here are some of the most interesting articles about the EU Bailot plan:

INITIAL THOUGHTS ON THE EUROPEAN BAILOUT, in the Pragmatic Capitalist

ECB to Buy Government Bonds in Secondary Market, in CNBC

E.U. Details $957 Billion Rescue Package, in New York Times

My thoughts on this emergency measures are the following: this is nothing but pure undiluted inflation. The only way these deficits are going away is through money printing and inflation. They are running their printing presses as fast as they can and asset and commodity prices will react accordingly.

Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY) and ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS)

Best Performing Stock Year To Date: Strategic Hotels & Resorts (BEE)

Strategic Hotels & Resorts Inc. (Public, NYSE:BEE) is the best performing Russell 3000 stock year to date, up 185%. RAIT Financial Trust (Public, NYSE:RAS) is the second best performer, up 158% YTD.

Interestingly enough they are both Financials.

Jose Barroso: We Will Defend The Euro, Whatever it Takes

“We will defend the euro, whatever it takes”

Jose Barroso, European Commission President

Related ETF`s: PowerShares DB US Dollar Index Bullish (Public, NYSE:UUP), CurrencyShares Euro Trust (Public, NYSE:FXE)

Marc Faber On The Sell Off.

"I don`t think Greece is the cause of the sell off. I believe its a catalyst but the cause of the sell off is that markets run up too much, too quickly. In other words, most emerging markets were up more then 100% from the March lows and the S&P 500 was up more then 80%, and as I have argued we would see a 20% to 30% correction this year. Anyway, it just happened that this 20% correction happened in 10 days."

in Bloomberg

Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY) and ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS), iShares FTSE/Xinhua China 25 Index (ETF) (Public, NYSE:FXI), PowerShares Gld Drg Haltr USX China(ETF) (Public, NYSE:PGJ), iShares MSCI Emerging Markets Indx (ETF) (Public, NYSE:EEM)

The Crash Explained.

Interesting explanation for what happened today in the market:

"There’s all sorts of speculation over what caused the crash today. The answer is simple. Pure unadulterated fear. Everyone is looking for someone to blame, but we’ve seen this happen in markets for hundreds of years. It happened before there were computers and it now happens that there are computers. Today was a classic fear filled day. We saw huge downside in many debt and forex instruments before the crash and the equity markets were the last to capitulate. The bids fell off the board and the sellers just continued to hit the bids. There might have been some “fat finger” trades or some electronic trading that contributed, but this was primarily fear. Good old fashioned fear. This has always happened in markets and will always happen in markets. It’s as simple as that as far as I’m concerned.

Investors are scared out of their minds as China looks like it is slowing substantially and Greece and the EMU appear to be on the brink. There are real fundamental reasons for the recent declines in stocks. In addition, it’s important to remember that there are a mountain of longs that have piled into the market in recent weeks and months with the expectation of a nice easy recovery trade. That is clearly off the table and there is a huge trade being unwound here. Greed has quickly turned to fear."

in The Pragmatic Capitalist

Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY) and ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS)

Art Cashin: You Might See People Came Back In At 1140-1150

Art Cashin, head of floor operations at UBS, talks about the greek situation and the probably support levels for the S&P 500 Index:

"You might see people came back in at 1140-1150"
Art Cashin

Meredith Whitney: US Recovery Is Unsustainable

Meredith Whitney, chief executive officer of Meredith Whitney Advisory Group LLC, talked with Bloomberg's Tom Keene, Ken Prewitt and Kathleen Hays about the U.S. economy, banking industry and credit market.

Whitney, the banking analyst who forecast Citigroup Inc.’s dividend cut in 2008, said yesterday the nation’s largest banks are susceptible to another dip in the consumer-credit market. (Source: Bloomberg)

Video Interview LINK

00:00 Consumer, corporate credit; Citigroup; banks
07:06 Sees second housing slump; U.S. regulation
12:24 Advice for big banks; Goldman suit
16:59 Greece; U.S. recovery unsustainable; credit
23:57 Toxic assets still here; commercial property
32:41 Who benefits from fall of Lehman, Bear?
37:18 Fannie Mae, Freddie Mac still losing money
42:18 Bright spots; bank profits under new rules
44:55 "Single best buy" is Visa on prepaid cards
Running time 47:38

Related Stocks: Visa Inc. (Public, NYSE:V), Citigroup Inc. (Public, NYSE:C), Bank of America Corporation (Public, NYSE:BAC), Goldman Sachs Group, Inc. (Public, NYSE:GS), Fannie Mae (Public, NYSE:FNM), Freddie Mac (Public, NYSE:FRE)

Wilbur Ross: We Are Going To Have Enormous Consolidation In The Banking Sector

“We’re going to have an enormous consolidation of banks in this country. The US has 8000 banks, and of those 8000 banks, a couple of hundred have already failed.”

Wilbur Ross, in Bloomberg

Related stocks: Citigroup Inc. (Public, NYSE:C), Bank of America Corporation (Public, NYSE:BAC), Fifth Third Bancorp (Public, NASDAQ:FITB), Huntington Bancshares Incorporated (Public, NASDAQ:HBAN), KeyCorp (Public, NYSE:KEY), Zions Bancorporation (Public, NASDAQ:ZION)

Wilbur Ross: I Believe In Goldman Sachs (GS)

“Warren, as you know, is a large investor in Goldman Sachs Group, Inc. (Public, NYSE:GS). He, being a canny investor, clearly believes in Goldman Sachs Group, Inc. (Public, NYSE:GS), and so do I. I think that Goldman Sachs Group, Inc. (Public, NYSE:GS) is the best-managed of the big firms without a doubt.”

Wilbur Ross, in Bloomberg

Breath Remains High, Outlook For Equities Remains Positive

"One of the hallmarks of the current rally off the February 2010 lows has been the S&P 500's strong breadth, which even after the recent pickup in volatility, remains supportive of the market. Following today's rally, the S&P 500's cumulative A/D line is just shy of its prior peak from April 23rd (4,894 vs 4,951). As long as breadth remains at or near bull market highs, the outlook for equities remains positive."

in Bespoke Investment Group

Related Etf`s: SPDR S&P 500 ETF (Public, NYSE:SPY) and ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS)

Marc Faber: Chinese Economy Is Likely To Crash

“The Chinese economy is going to slow down regardless. It is more likely that we will even have a crash sometime in the next nine to 12 months. The market is telling you that something is not quite right"

in Bloomberg

Related Etf`s: iShares FTSE/Xinhua China 25 Index (ETF) (Public, NYSE:FXI), PowerShares Gld Drg Haltr USX China(ETF) (Public, NYSE:PGJ), iShares MSCI Emerging Markets Indx (ETF) (Public, NYSE:EEM)

Related stocks: China Mobile Ltd. (ADR) (Public, NYSE:CHL), China Life Insurance Company Ltd. (ADR) (Public, NYSE:LFC), PetroChina Company Limited (ADR) (Public, NYSE:PTR)

Buffett Backs Goldman Sachs (GS). GS Falls To A 2 Week Low.

“I can’t see what difference it makes if it were Paulson on the other side of the deal or Goldman Sachs or Berkshire Hathaway” Warren Buffett

Buffett said it “wasn’t so obvious” when the investments were sold in 2007 that the housing market would collapse.

Buffett invested 5 billion USD in Goldman Sachs in 2008. The warrants Buffett negotiated as part of the deal give Berkshire the option to buy 5 billion USD of common stock for 115 dollars a share. The shares closed at 145.20 dollars yesterday, the lowest close since the SEC`s news hit the wire.

Related Stock: Goldman Sachs Group, Inc. (Public, NYSE:GS)

Seasonality Is Bad For Stocks. Is The Party Over?

We are now entering a seasonally unfavorable 6 month period for the stock market:

"Research published by Yale Hirsch in the Trader’s Almanac shows that the market year is broken into two 6 month seasonality periods. From May 1 through October 31 is seasonally unfavorable, and the market most often finishes lower than it was at the beginning of the period. From November 1 through April 30 is seasonally favorable, and the market most often finishes the period higher." in The Prag Cap

Anyway, while the statistical average results for these two periods are quite compelling, trying to ride the market in real-time in hopes of capturing these results is not always as easy as it sounds.

Related Etf`s: SPDR S&P 500 ETF (Public, NYSE:SPY), ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS)

Also check this article on Stock Market Seasonality