Archive - Oct 14, 2009 - Story

After making repeated killings as a short (and being compensated for it), John Paulson is now actively looking for undervalued long opportunities (that are not misreported by the NYPost). Such seems to be the reasoning behind his latest disclosed involvement in insurer Conseco, where he is now the proud owner of 9.9% of the common stock after a $280 million investment.

"This administration without any experience is doing more damage than is easy to assess at the moment, but I can tell you I am sure that we are moving in the wrong direction and i say that as half a democrat and half a republican. What we are seeing now just doesn't make sense. The priorities have all been inverted." - Steve Wynn

Earnings are coming in higher than expected not surprisingly. Some of the details though such as margin for Intel are trully better than what was baked in. On the day we are getting close to the topside resistance trend joining recent highs around 1,087/1,088. Above that the topside of the expanding triangle is resistance at about 1,100, but given divergence I would rather expect ranging between 1,077 and 1,087 during the day before the next wave of earnings barring any data coming way off line one way or the other. There is a minor resistance around 1,071 below that, but should we break 1,077 the real support comes in at 1,065.

• JPMorgan reports better than expected results, loan losses increase (AP)
• Japan bond optimism at 8-month high as growth prospects before second largest economy wane (Bloomberg)
• China to curb steel production to reduce oversupply (Bloomberg, h/t deadhead)
• Geithner aides reaped millions working for banks (Bloomberg, h/t donald)
• Don't reinflate the old bubbles (WaPo)
• Dollar slumps to 14 month low (Reuters)

• Bank of Japan holds rate at 0.1%, doesn't comment on ending credit steps.
• Baucus Health Overhaul plan is passed by Senate panel with Snowe's support.
• China to curb steel output to reduce oversupply: Wuhan, China's third-largest mill.
• China's exports drop by least in nine months as global economy strengthens.
• China's central bank says foreign reserves hit record high $2.273T shortly.
• China shares rise on hopes for better 3Q corporate earnings, led by financials, property.