What does the BETA of a stock represent?

Posted by Eric LeRiche | May 25, 2010 .

By definition, the market itself has an underlying beta of 1.0, and individual stocks are ranked according to how much they deviate from the macro market (for simplicity purposes, the S&P 500 is usually used as a proxy for the market as a whole). A stock that swings more than the market (i.e. more volatile) [...]

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Upcoming trading week forecast

Posted by Eric LeRiche | May 17, 2010 .

The overall technical condition of the major indexes continues to deteriorate. We are a little oversold on an intraday basis but not on a daily basis. Charts suggest downside to near the 200 day moving averages of the major indexes. (NYSE composite broke below it friday.) For the S&P 500, that stands at 1100 today. [...]

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More Banks are being Investigated…

Posted by Eric LeRiche | May 13, 2010 .

U.S. authorities are expanding their probes of past mortgage securities deals, with New York’s attorney general opening an investigation into whether eight banks misled rating agencies, a source familiar with the matter said. New York Attorney General Andrew Cuomo’s office on Wednesday served subpoenas on four U.S. banks and four European lenders, the source said. [...]

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The Only Hope… A (Much) Cheaper Euro

Posted by Eric LeRiche | May 12, 2010 .

Look. You can’t borrow your way out of debt. More loans won’t do it – you have to save and grow your way out. Saving and growing require an upswing in productivity. Thus the struggling PIGS – Portugal, Italy, Spain, etc. – do not just have a debt problem, they have an economic growth problem. [...]

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Bulls vs Bears

Posted by Eric LeRiche | May 11, 2010 .

The U.S. stock market jumped 3.9% on Monday, following a deal by the European Union (EU), the International Monetary Fund (IMF) and the European Central Bank (ECB) to bail out not only Greece but other European countries, as well. The $955-billion program resulted in broad gains in Europe’s major indices and set the stage for [...]

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Markets snap back but for how long?

Posted by Eric LeRiche | May 10, 2010 .

Last week I noted, “…high-flying stock markets are looking more and more vulnerable.” I wrote, “…resistance appears significant. Volatility (fear) is returning in a potentially big way. It’s not here yet; and that increases the likelihood of lower prices to come. Global markets are reflecting a reprise of contagion distress. I continue to suspect equities [...]

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Possible Scenario for Thursday`s Market Crash

Posted by Eric LeRiche | May 8, 2010 .

Down 1,000 points at its worst, the Dow recovered to a 350-point loss on the day. And all because “M” is just a hair too close to “B” on a standard American keyboard, we’re told. The story goes that a trader at a major firm perhaps mistyped a trade as “billions” rather than “millions.” Word [...]

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The Chaos might Just Beginning

Posted by Eric LeRiche | May 5, 2010 .

There is a four letter word to describe yesterday’s action: U-G-L-Y! All of a sudden the world is waking up to the idea that maybe the Greece problem is bigger than Greece … All of a sudden people are thinking that maybe Europe’s debt crisis just might affect economic growth rates … All of a [...]

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Can you make money in the aviation sector?

Posted by Eric LeRiche | May 4, 2010 .

“This is a nasty, rotten business.” – Robert L. Crandall, former CEO & President of American Airlines After years of off-and-on conversation, United Airlines (UAUA:NASDAQ) is getting into bed with Continental Airlines (CAL:NYSE) in a merger deal valued at $3.7 billion. The merged entity, keeping the United name, will be the largest airline in the [...]

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The Economic Calendar this week

Posted by Eric LeRiche | May 3, 2010 .

Economic Calendar The economic calendar offers up a busy first day of the week, as traders will be confronted with March’s personal income and spending data, March’s construction spending report, and the Institute for Supply Management’s (ISM) manufacturing index for April. Auto and truck sales reports for April will arrive in the afternoon. Tuesday offers [...]

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