A perfect day in the markets is when none of my stocks go down, and all of the indexes are down:
BIDU: 8.03 to $179.93 ( 4.67% , 16.08% overall)– bought at $155.00
GNW: 0.11 to $15.29 ( 0.72% , 63.18% overall)– bought at $9.37
NDZ: 0.01 to $8.48 ( 0.12% , 0.71% overall)– bought at $8.42
NNVC: 0.00 to $5.01 ( 0.00% , 97.24% overall)– bought at $2.54
PVCT: 0.03 to $1.03 ( 3.00% , 10.75% overall)– bought at $0.93
SPXU: 0.19 to $16.41 ( 1.17% , -1.14% overall)– bought at $16..60
YHOO: 1.35 to $40.22 ( 3.47% , 49.63% overall)– bought at $26.88
I sold half of my Nordion Inc. (NDZ) position at $8.51. My only purpose in increasing my position originally was to lower my dollar cost average. Now I can return the position to a smaller size, with a small profit.
The semi-final line on it:
NDZ: +0.04 today, +0.09 overall to $8.51 (+0.47% today, +1.07% overall)–bought at $8.42
You can add the daily Williams %R as the latest overbought S&P 500 technical, joining the weekly Williams %R and the weekly RSI. This doesn’t guaranty a drop, but it does add pressure.
The S&P 500 levels to watch today:
UPSIDE: 1810-1811 (2 data points), 1813 (November’s high and the all-time high), and 1816 (top of the Bollinger Bands).
LAST CLOSE: 1808.
DOWNSIDE: 1806 (2 data points), 1794-1803 (3 data points), 1793 (20 day moving average), 1792 (December 5th’s high), 1787-1788 (2 data points), 1783 (December 5th’s low), 1779 (December 4th’s low), 1775 (October’s high), 1771 (bottom of the Bollinger Bands), and 1754 (50 day moving average).
I am still trying to get used to the new layout at Bloomberg. Who came up with that garbage?
Los Angeles Times: GM, Chrysler federal bailouts were net economic gain, report argues
As the federal government gets ready to sell the last of its shares in General Motors Co., a research institute has calculated the final bill on the auto industry bailout and says that taxpayers were net winners.
The Center for Automotive Research, a Michigan nonprofit organization that analyzes auto industry issues, said Monday that the U.S. government will lose about $13.7 billion on its bailout of GM and Chrysler Group.
But the think tank said those funds “saved or avoided the loss of $105.3 billion in transfer payments and the loss of personal and social insurance tax collections — or 768% of the net investment.”
Additionally, the center said the bailouts and financial restructurings saved about 2.6 million jobs in the U.S. economy in 2009 and $284.4 billion in personal income over 2009 and 2010.
In the report, “The Effect on the U.S. Economy of the Successful Restructuring of General Motors,” researchers Sean McAlinden and Debra Maranger Menk wrote that the value of the bailouts can’t be considered just by what the taxpayers will lose in the sale of GM’s stock.
While I agree that the GM and Chrysler bailouts cannot be judged simply on what the U.S. government loses on their stock, there is another aspect which the report ignores: Why were these companies failing? Because the world, and the U.S., has too many car companies. Would the U.S. government have been better off making “$105.3 billion in transfer payments and the loss of personal and social insurance tax collections”, or was it better to prop up failing businesses that the economy doesn’t need? The proof will come when we end up with another car manufacturer failing. Chrysler already went through this once before, and they came back, only to fail again. At some point, we have to recognize that all these jobs in auto manufacturing aren’t needed, and these workers need to find jobs in other fields.
BIDU: 3.19 to $171.90 ( 1.89% , 10.90% overall)– bought at $155.00
GNW: -0.02 to $15.18 ( -0.13% , 62.01% overall)– bought at $9.37
NDZ: 0.09 to $8.47 ( 1.07% , 0.59% overall)– bought at $8.42
NNVC: 0.12 to $5.01 ( 2.45% , 97.24% overall)– bought at $2.54
PVCT: 0.01 to $1.00 ( 1.01% , 7.53% overall)– bought at $0.93
SPXU: -0.12 to $16.25 ( -0.73% , -2.11% overall)– bought at $16..60
YHOO: 0.01 to $38.87 ( 0.03% , 44.61% overall)– bought at $26.88
No daily notes today, as I am a little pressed for time. However, in checking the news this morning, I didn’t see anything market-shaking. Frankly, the week ahead is a little light in significant economic reports, so there is no point in even bothering with a “look ahead”.
Which brings us to the S&P 500′s technicals. Friday’s move up was a head-scratcher. It pushed the daily technicals a little closer to overbought (although still neutral), and it kept the weekly technicals in the overbought category. On top of that, the Bollinger Bands are starting to contract, which usually happens before a big move, but that move can be up or down. With futures slightly up this morning, I would recommend caution here, although I won’t go so far as to make any kind of predictions. The S&P 500 is in need of a weekly correction, and Friday’s move up left the S&P 500 only slightly down for the week.
The S&P 500 levels to watch today:
UPSIDE: 1806 (December 6th’s high), 1810 (December 2nd’s high), 1813 (November’s high and the all-time high), and 1815 (top of the Bollinger Bands).
LAST CLOSE: 1805.
DOWNSIDE: 1794-1803 (3 data points), 1792 (December 5th’s high), 1791 (20 day moving average), 1787-1788 (2 data points), 1783 (December 5th’s low), 1779 (December 4th’s low), 1775 (October’s high), 1768 (bottom of the Bollinger Bands), and 1751 (50 day moving average).
Another week is coming to an end, which means another weekend open thread, where you can discuss anything you like.
For your consideration…I was recently looking through Spotify’s list of Bryan Adams’ songs, and I noticed the popularity rating on the following song was quite low, which amazed me, since I consider it one of his best:
Enjoy your weekend folks!
PORTFOLIO UPDATE: My IRA portfolio finished Friday up 0.02%. Nothing exciting.