Market Close>5-8-08

The DOW finished up 54.23 to 12,866.78. Unable to hold onto earlier gains, the DOW looks to be trading in a range and doing a little consolidation during this period.


AIG reported a $7.81B loss for the quarter after the close today. And you can bet this will effect the financials for the 3rd day in a row tomorrow. They also mentioned raising $12.5B in capital and got downgraded by S&P also today.

Rough times for AIG and by looking at the chart, we might see AIG in the $40-50 for the next 3-6 months, or when the write downs slow down.

Chevron also took a major hit today when it announced layoffs of 1000 workers after reporting income of over $5B.

We like the SKF over the next week, as fundamentals continue to write the story
and the Feds start to push on the FHA housing plan on the plate of Barney Frank. This bill is estimated at a cost of $2.7B over 5 years. One might think, due to history, this plan might cost double the amount they are currently estimating. If that happens we can count on the SKF rallying for decades or maybe only several years.

Feel free to call or write Barney Frank and let him know your thoughts on propping up housing markets, federal give away programs, and waisting tax payer dollars on free markets.

Good Fortune from Trade Equity!!!

Thursday Late Lunch

3:23pm

After being up as much as 90+ points, the DOW is now only up 20 points.

Gold(GLD) is heading higher for the 3rd day, and oil is down by .88 cents. Keep an eye on GLD over the next 2-3 months. We could be heading higher as the world feels inflation from fuel and food.

Retail is starting to slip a bit on news that the retailers that are heading higher are the same ones that selling groceries and gasoline.

It looks like the DBA is up slightly to $37.02. Meaning the Ag trade look as if it could be heading higher.

But the big news today is the Bank of England, deciding to keep interest rate the same, while the belief was that they needed to lower much like the US.

Good Fortune from Trade Equity!!!

Thursday PreMarket

The open today looks positive. Retailers(XRT) look to be leading the pack. Within 30 seconds of opening the DOW is up 35.

We look for a strong day due to the fact Unemployment Claims came in under the forecast. The number that was issued was 365K, while the forecast was 370k.

Meanwhile Oil is currently down .23. The VIX is down .04 to 19.75.

The economy has hurt some and helped others. Wal-Mart and Costco are reporting higher revenues due tougher times. Costco sales advanced 8% year over year.

Toyota suffers 28% in net profit.

But the larger story today is the fact that the lawsuits are starting to roll in for
improper investing by State Street. Prudential is suing them for over $7B.

Good Fortune from Trade Equity!!!