Vince and Bill Brinson start the week. What is driving the market here? The indicators do not look good for the long side. What about the latest earnings news? What is an option strategy to use here? Bill relates lessons from the past that may emerge here. Another Black Monday? What is safe in a deflationary scenario? Is this a sucker rally? New trend? When do the financials rally? Trading earnings for jobs? The worst of the downturn is now hitting the economy. 3M(MMM) is discussed in depth. What about the earnings from Transportation stocks? Will this encourage the bulls? Airlines reporting record profits. Does this impact the Dow Industrials? Seasonal factors in price of oil? Decade long cycles a factor? Tony Hayward and his future are discussed.
Unemployment and the trend are reviewed. With the consumer on the sidelines, it will be a difficult environment for job creation. Does the offshore oil industry suffer long term damage? Are there opportunities to the long side? Bill reflects on the technological changes and impact on the market. More data is available but you have to process it to provide information about an asset. Why have there been no commercial foreclosures? Have banks been raising additional capital to forestall collapse? Record FDIC closure rates YTD. Commercial notes not covered by Freddy Fanny government guarantee. The future of the Union is discussed with interesting insights into the strengths and enduring principals of its citizens.
