Saturday, 23 January 2010

Weekly Wrap: Your source for stock, stock market, and stocks info

Weekly Wrap: The market is feeling the heat right now. I know some bears are finally feeling some relief after actually believing they might be crazy. Some of them even believe the party is over. I am skeptical of it until I start to see the market pick up on the down side. It's long overdue and about time that market participants come back to their senses about the prospects of recovery in the economy. Japan Airlines entered bankruptcy earlier in the week. It is Asia's top carrier. It is an example of an organization which tries to sustain itself with massive amounts of debt. First Solar, a alternative energy company, signed a contract to build 22 megawatts of solar power plants in New Mexico. I have got my eye on First Solar (FSLR) because I think they will be the Exxon (XOM) of the future for the alternative energy industry. Bank of America said they lost more money than expected. No surprise there. That bank has real financial troubles that most of the public is not privy to. Also, I think I heard a quote from Bill Miller (fund manager at Legg Mason) that he was in there buying and he would buy more a few weeks ago. No coincidence that Legg Mason got blasted this week. Maybe investors are tired of seeing massive losses from his value investing strategy. No disrespect to you value guys but they are just pieces of paper. Price IS the only thing you can trust, and when it’s going down. There is no need to get in front of that train. Most of the fervor this week is coming from President Obama's proposal on banning proprietary trading. Interesting, we'll see how far that goes. Most of the sell-off to end the week was blamed on Obama's new plan, but in reality the stock market was rising on fumes. Lots of stocks just ran out of steam, and people decided to sell.

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