GS GS wanna dominate the whole Wall Street

The U.S. markets continues its gain for 3 days!… Yesterday big time. The Dow rose 331 points, or nearly 2.6%, to its second-best single-day jump of the year. The S&P 500 followed suit, adding 2.9%. The Nasdaq outperformed nearly all sectors… launching 3.2%.

Coupled with Tuesday’s gains, markets staged their best two-day performance since October 2002.

But Goldman Sachs wants even more… “The increased risk of recession is likely to lead the FOMC to cut its federal funds rate target to 3% by mid-2008,” Goldman Sachs wrote to its investors recently, with a more temperate approach to a similar request made in Cramer’s now infamous tantrum this summer. “We believe such aggressive action is necessary to counteract the effects of the housing downturn and the associated credit crunch.”

The way things are going, their wish is the Fed’s command.


Yet according to ebullient quants at the Bureau of Labor Statistics, everything’s just peachy. Gross domestic product (GDP) in the third quarter grew at an unanticipated rate of 4.9% , they crowed this morning.

That rate beats the government’s own forecast by a full 1% and marks the strongest quarterly economic growth since the same quarter in 2003, and the second-best GDP reading since the height of the tech boom in early 2000.

Peachy. These numbers seem so clearly disconnected from reality… oy. We’ll follow up tomorrow.

don't catch the due rebounce

A couple days ago, I mentioned that when SPY touched 140~141, we might see a local bottom which came true now. However two days' due rebounce is just a short term effect. Be patient!

Financial stocks are oversold, and may be due for a bounce," declares Dan Amoss, editor of Strategic Investment. "But they are not out of the woods yet."

Hmmm....

Dan's assessment seems balanced and reasonable, but we're not sure WHICH part of Dan's message deserves greater weight: the "due for a bounce" part or the "not out of the woods" part.

Financial stocks certainly seem to be due for a bounce. Most technical indicators for the financial sector portray a "deeply oversold" condition. And most gauges of investor sentiment tell a similar tale. To top it all off, most anecdotal evidence seems to be screaming "Buy!"

More shoppers but fewer sales

147 million shoppers pillaged stores in the U.S. for their holiday booty over the weekend… up nearly 5% from last year. But even with the added help, sales were down 3.5% from the same period the year before.
"While last year showed a greater emphasis on high-definition televisions," says National Retail Federation (NRF) CEO Tracy Mullin, “this year, consumers were focused on lower-priced doorbusters like digital photo frames, laptops and cashmere sweaters.” The average shopper spent $347.44, down over $10 from last year.
- Nearly 15% of “Black Friday” shoppers were nutty enough to hit stores for those 4 a.m. sales -- up nearly 2% from 2006.
- 1 in 12 consumers have finished their holiday shopping already. On the other hand, 2 out of 2 of your editors started thinking about Christmas about 5 minutes ago and will finish their holiday shopping sometime around 10 p.m. on Christmas Eve.
- Men so far this year have spent an average of $393 shopping; women less… $303.
- The NRF expects holiday sales from now till the end of December to rise 4%, to $474.5 billion -- the slowest growth rate in 5 years. If you’re the betting type, you might still find a few good shorts on retailers this week…

Dollars under nerve

"They get our oil and give us a worthless piece of paper," Iranian President Mahmoud Ahmadinejad told his OPEC cronies on Sunday. OPEC’s 13-member cartel met over the weekend, and the decline of the dollar was clearly on the minds of its ministers.

"All participating leaders showed an interest in changing their hard currency reserves to a credible hard currency," Ahmadinejad said. "Some said producing countries should designate a single hard currency aside from the U.S. dollar... to form the basis of our oil trade."


“That’s right heathens… 2… $200 a barrel”

"Don't you see how the dollar has been in free-fall without a parachute?" chimed in fellow nutjob and OPEC minister Hugo Chavez. "The empire of the dollar has to end," said he, urging his OPEC brethren to shift to the euro.

Curiously, neither mentioned their own worthless paper currencies during the press conference.

Do NOT try to catch the BOTTOM

We might see a 3% rebounce next week but just hold it position for short time and quick profit.

Very impressive Scene

The U.S. and China both released October “retail” numbers

One nation reported 0.2% growth, the other 18.1%… we’ll let you guess which country consumed more.
Here’s a hint from Ian: “That number helps explain a 8% hike in Wal-Mart earnings… and a 6% boost in the stock yesterday.

Foreclosure filings, for example, were up a staggering 30% in the third quarter of ’07 compared to the previous three months. California, Ohio and Florida are still leading the charge, says RealtyTrac.
Of the nation’s 100 largest metropolitan areas, 77 saw a rise in delinquencies in the third quarter. The worst city in the third quarter proved to be Stockton, Calif., where one in 31 households was delinquent. Close behind was Detroit -- 1 in 33.
For what it’s worth, the metro areas least affected included Greenville, S.C., McAllen, Texas and Baton Rouge, La.

Today marks the first day of rally attempt

Today will mark the day one of rally attempt.

Wall Street's funds are quite abundant, no funds, no matter how good the economy falters. In the past few years the A shares. There
Funds and, the poor economy,
On the same day 300 points.
Today, the United States economy changed? No. The difference is that MM has scored cheaper chips. This time of the two
Possible, 1) did not collect enough chips to continue to suppress, 2) chips today eat enough, the next拉高prepared to spend money.
From today's盘面point of view, is obviously not the first, not so easy for retail investors with a fortune.
Yesterday I said that AAPL from 153 to return to the 161 do not need more than three days, today is my estimation is too conservative Rafah.
Get on the half-hour. Today AAPL fundamentals changed?

Stock 10,000 years remaining unchanged and retail eat the meat, drink the blood of small investors. Play option, I play but they Global DRAM Pricing hand, play
Stocks, they now take my没辙.
DOWS will continue to maintain the high end of the judgment because it is external funds too much pull. The money, the stock market was up,
Pieces will acquire Rafah. Why can double A-shares? God is the mother shares set out all the resources of Latin America. Now why Wall Street
That was up? This year's hedge fund their cash flow reached record highs this month. Their past two weeks
Mainly in the short.OMG, when they cover and turn to bullish?

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Statement: This article only representative of my view, does not mean necessarily the case, for reference purposes only.

Market traded in shorters' view, but it will hold

Friends are so worried about what happen , what happen today?
Several reasons to be considered here,
1:
“The world's currency structure has changed; the dollar is losing its status as the world currency,” said Xu Jian, a Chinese central bank vice director, yesterday. “We will favor stronger currencies over weaker ones, and will readjust accordingly,” confirmed Cheng Siwei, vice chairman of China's National People's Congress, at the same conference.

And that was all she wrote for the U.S. dollar.

While China has yet to formally announce a change in its foreign exchange reserves, the allusion was enough to spook traders. Here’s the breakdown:

Euro: $1.47 -- an all-time high versus the dollar
Pound: $2.10 -- 26-year high versus the dollar
Canadian dollar: $1.10 -- rose almost 2 cents in one day, a new all-time high
Australian dollar -- 93.9 cents -- gained over a cent overnight, to a new 23-year high
Yen: 113 -- gained a full point versus the dollar to 2-month highs
The dollar fell against every other actively traded currency… 16 in all.

Profit-taking has since chased down several of these currencies from their peaks, but as we write, all remain above previous highs.
2:
Oil prices also responded to the increasingly weak dollar, rallying as high as $98 this morning. $100 oil… please… it’s in the bag, baby.

3:
The former largest automaker in the world, GM, announced a staggering $39 billion loss in the third quarter. Shares fell over 5% in premarket trading after the U.S. automaker revealed the second largest quarterly corporate loss for an S&P 500 company…ever.

GM attributed the losses to a somewhat complicated charge involving unused tax credits, as well as mortgage losses from its since divested financial arm, GMAC.


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Overall, market will find bottom around 200 ma.

Maybe it is time to take some profit of gold off table

Gold soared to fresh 27-year highs overnight. In Hong Kong and London, gold rocketed up a staggering $15 and currently trades around $822 for immediate delivery.

Analysts at UBS upgraded their one-month forecast to $850. “With the two external drivers of gold, a weak dollar and strong oil, together conspiring to lift the metal higher,” said UBS analyst Robin Bhar, “we are now in range of a move to the all-time nominal high.”

But what then? “Assuming that $850 trades,” says Bahr, “a scramble for upside could see gold push higher still. But one thing is sure, once the dust settles, gold will likely correct sharply lower.” UBS’ three-month forecast for gold remains the same -- $750.

PetroChina is now the world’s biggest comp

The state-owned oil giant raised just short of $9 billion for its IPO in Shanghai. As Chinese markets closed this morning, shares of PetroChina nearly tripled in their first day of trading. Coupled with shares trading in Hong Kong and New York, Shanghai buying sprees vaulted the net worth of this company to… sit down for this…

Over $1 trillion.

That is DOUBLE the market cap of Exxon Mobil, the world’s second largest company. When trading closed on Friday, PetroChina was worth $456 billion, not too far behind Exxon’s $488 billion. But… throw in a few million foaming Chinese investors… poof! A trillion bucks.

How does it fare in the earnings category? Dare we ask? PetroChina isn’t even in the top 50 of global companies.

sell PTR, we recommend to sell and its PE ratio over 60 can't be justified in any perspect while we think the reasonable one should be around 25.

The sell-off should bring our caution

The sell-off after the Fed-meeting already catch our attention. The information are mixed so far. Several big names got hammered, such as GS, ISRG, IBM while the technolgy stock rallys during the market sell-off. The breakout of msft leads GOOG, BIDU 's really into new high. However this action normally means market may see another round of sell-off before the year end rally starts.

We should be caution on the early next week.