Archive - Dec 15, 2009 - Blog entry

A pension fund for fire and police officers has sued the board of Goldman Sachs, seeking to stop the investment bank from paying out billions of dollars in bonuses to the bank's staff. Will larger public pension funds join in on the lawsuit? I wouldn't count on it...

Carbon trading is a scam. But soot can be reduced COST-EFFECTIVELY, which not only will do a lot in regards to climate (if the world is warming - see Project Mayhem's writings), but will also be good for the health of those who live in China, India and other areas getting mugged by the gunk.

One of the screens that we at Fibozachi continually monitor throughout the Cash session (09:30 - 16:00) is the NYSE TICK.

The hackneyed cliche of "volume precedes price" is certainly true more often than not, however, it is far from foolproof. We prefer to modify this tired cliche by saying that: "buying and selling pressure precedes price."

The snapshots included (from today's session) clearly illustrate how this critical relationship (between the TICK and price action itself) plays out on a daily basis.

In this 12.15.09 edition of the Fibozachi Technical Update (FTU), we present you with 15 technical profiles of the BKX - Bank Index, Crude Oil Futures, Natural Gas Futures, the VIX, the US Dollar Index, and IBM common stock ...

Is Citi going to be out of TARP after completing the secondary it is trying to get done? No is the answer. But you could have fooled me.

REITs have ascended too far from their fundamentals -DJ US Real Estate Index has outpaced S&P 500 index by more than 50% during a time when their macro and fundamental outlook pale compared to that of the broad market. There is no "deal" to be had here! What you are witnessing is momentum trading, not fundamental value.

If the economy is to recover, the price of Nat Gas will have to move higher. Exxon bet a reasonable portion of the 'ranch' on gas with the XTO deal. I think it is a good bet. Exxon's good news is going to be bad news for everyone else. Same old, same old.

Ackman from Pershing Square fame has released a very bullish CRE presentation. I stand diametrically opposed to both the conclusions and the analysis in general, thus have created my own comprehensive CRE outlook for 2010 and beyond. Here you have it: A bulls vs bears debate in the CRE space - both of which are quite well documented and allow for rich reading.

Unable to find any compelling valuations among US bank stocks I have taken my search north of the border to find the best of the Canadian banks. Based on my initial research that bank is Toronto-Dominion Bank (NYSE: TD). While it may not be a buy at the current levels, this is certainly a stock to keep an eye on if this incredible market rally ever reverses.

CalPERS may be paying a price for its decision to help financially strapped local California governments. Moody's Investors Service slashed the triple-A rating of CalPERS by three notches to Aa3. But the real story is how CalPERS' private equity and real estate portfolios got decimated last year. Will this influence future credit ratings?

Today there is still an unbelievable opportunity to invest in gold that will disappear over the next several years as this monetary crisis deepens. Despite the general widespread sentiment of Western financial advisers that they have missed the run-up in gold and now it is too late to buy, this is not true at all.