exportdealer
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short
I think we may have a very small retrace to 6800s to test support and then another rise up.
If 7000-7100s broken to the upside it would be a clear change in trend for me. Heading towards 7500 and then testing 8000.
I wouldn't like to short this market now especially with spring round the corner. That is not unless we fall below 6450s again.
sorry to disagree m8, i'm still emphatically bearish.
in no way has the US or world financial system fixed itself yet, plenty more Downside to go before a true change in trend imho,
although we may see more of these brief rallies, both stronger and more frequently.
You know when that guy speaks, it's almost like he is about to break down and say........
"oh ****, forgive me,,, the systems gonna collapse... what have I done, I can't take this lying anymore...I'm sorry, I'm sorry" (and then he legs it and remains a jibbering monkey )
He has a nervousness in his voice, always.
maybe its me, anyone else notice his cracking voice when he talks about stablising the economy, it doesn't sound like he believes it, one bit.....
Most odd !
Yes his tone of voice has a certain resonance about it - a quiver perhaps???
If I was chairman of the Fed though I wouldn't care what the rest of the World thought or believed. I'd tell it like it was.
We make the rules boy... you listen up now!!! Horse ****, bull **** or respectable cow dung, you just keep shovelling till we tell you otherwise. You hearing me loud and clear boy!!!
Here is a long term chart. The DOW has never quite been extended in over sold territory this bad since well before my time... :whistling
Bounce inevitable imo. 6450s or 6019 pretty close to the extreme support line starting from back in 1985 (as in the year not the index :cheesy...
I'm pretty confident we are heading towards 7500 - 8000 - 8400s. This will be anything 2-6 weeks pull back to April...
There you go... necks in the guilloteane...
Bad News For Bank shares once again........
By Joe Bel Bruno and Maxwell Murphy
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Both Citigroup Inc. (C) and Morgan Stanley (MS) are facing a problem as they try to pay their employees: They're running out of shares.
Both companies in the next few weeks will announce plans to authorize or repurpose shares to have enough stock to compensate employees, people familiar with the matter said. The need to add or free up stock has been exacerbated by plunging share prices for financial companies.
Citi will ask holders to boost its authorized share count far beyond what it needs to meet a capital restructuring announced last month. Morgan Stanley may need to use more of its currently authorized shares for bonus payments, which will require shareholder approval.
The dilemma the companies face reflects the devastation that the bear market has inflicted on their share prices. Lower prices means they must pay out a larger number of shares to meet a given compensation sum. Other companies have run into this problem as well; the problem is more tricky for financial-services companies because their acceptance of government money prevents them from buying back shares to use in compensation.
Analysts believe it isn't just Citi and Morgan Stanley that will be going to shareholders. Others could follow suit in the coming months if banking stocks don't bounce back.
When asking shareholders for authorization, banks "are going to leave the reason very broad and indeterminate so they aren't limited to how they'll ultimately make use of the stock," said Richard X. Bove, an analyst with Rochdale Securities. "But, the critical issue is the market is not going to be receptive to a major stock offering by a bank."
Citigroup is finalizing plans to seek shareholder approval to boost its share authorization to 40 billion shares or more from 15 billion, said two people familiar with the matter. The bank doesn't immediately need all the shares it is requesting since it has 5.5 billion outstanding and needs 16 billion for its capital restructuring.
Citi is requesting the huge overhang in large part to pay out equity-based compensation, say people familiar with the matter.
Shares of Citi were trading just above $3 recently, after having fallen to as low as 97 cents earlier this month.
Morgan Stanley may need to look at expanding its 3.5 billion share authorization in the coming months. More immediately, according to a person familiar with the matter, it is expected to ask shareholders to allow it to use some of the roughly two billion share it has authorized but hasn't yet issued for compensation.
Shares of Morgan Stanley were trading at about $23 on Wednesday, well below the year-ago price of $51.80.
Spokesmen for both Citigroup and Morgan Stanley declined to say exactly how much stock they will need for future compensation payments.
Public companies must specify the reasons for issuing shares, such as the need for compensation, general corporate purposes, or acquisitions. Any changes would require shareholder approval.
One reason banks are finding it harder to grant stock bonuses is the depletion of their treasury stock, which is comprised of previously repurchased shares that are kept on the books for later use.
When companies repurchase shares, they can retire them and take them out of existence or they can place them in treasury. Treasury shares can later be used to pay bonuses, satisfy option exercises and make acquisitions, among other things.
The amount of treasury stock at some of the biggest U.S. banks has been dwindling. Financial companies that accepted bailout money are restricted from freely buying back shares, which leaves them unable to replenish treasury stock.
For example, Citi burned through 261.2 million treasury shares in 2008, leaving it with just 221.7 million for use this year and beyond.
-By Joe Bel Bruno, Dow Jones Newswires; 201-938-4047; [email protected]