Thursday, June 17, 2010

Financial Updates

As a follow up to last week's comment on the $ 1.5 billion claims pool for the BP spill I note that number has now morphed into a new dimension as the size of the spill now equals the size of Kansas. What's next? A Texas sized spill?
I haven't looked at the Financials Rotator for a while, having been focused on the 3 Stooges-like boondoggle of BP, but things look like they might be heating up in that sector and here we are:
In top slot is BAC, whose chart doesn't look like the barn burner that most bulls favor, but the technicals are certainly encouraging, with 14 providing a strong support level for the past year.
For the risk adverse a low exposure buy/write of the July 15's will yield 2.5 % with breakeven at 14.63, pretty good odds IMHO.
Stepping back a little almost all the components of the Rotator are showing positive Moneystream values with AXP and KBE showing the most leg. Although negative on Wednesday USB looks like it could mimic the BAC chart in short order. Yesterday's USB weakness may be due to analysts' crystal ball gazing that USB may be up for buying some midcap banks and their inherent risk.
SKF is the proshares' ultra short ETF so it's weakness is just the other side of the XLF coin.

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