April 23, 2010

Monster Market Review:

U.S. stock futures were higher ahead of the Wall Street open on Friday, with Greece in focus after the prime minister made a formal request to tap international aid for the debt-strapped country.

Prime Minister George Papandreou formally asked to tap a 45 billion euro ($59.9 billion) European Union-International Monetary Fund aid package after soaring borrowing costs were seen as making it nearly impossible for the country to meet its funding needs on the open market. The news helped spur a relief rally for the euro, and Europe stocks were clawing back ground after sliding on Thursday when Greece’s debt rating was cut by Moody’s.

The Group of 20 finance ministers will meet in Washington, D.C. this weekend, with the focus seen on Greece and financial regulation.

U.S. stocks closed higher Thursday, led by stocks of home builders and technology stocks. Wall Street has been on a run since early February and as of Tuesday’s close, the S&P 500 index is up more than 78% from its March low and 8% ahead so far this year. The Dow Jones Industrial Average and other major indexes sported minor gains.

Economic data on Friday includes durable goods orders, due for release at 8:30 a.m. Eastern and new-home sales at 10 a.m. ET. Both are March figures. Also Friday, credit ratings agencies will face a Senate hearing on the role they played in the run-up to the 2008 financial crisis.

Asian stock markets traded lower, with Greece’s fiscal troubles weighing on Japanese exporters, but Korean and Taiwan liquid crystal display makers higher.

Monster Portfolio Weekly Review:

The week began on a tough note for both the markets and our portfolio.  This eaisly was the toughest week we have experienced in over 6 months.  However, RF & FIG quickly helped us regain profits and now the portfolio looks strong again with NENG inching closer to our 15% target.  Should we hit this today we will book a profitable week. 

Today we should see a quick rise in the markets.  We anticipate the markets to ease off this afternoon but for Monday to once again begin a positive week barring any negative news from Europe.  As many of you have noticed we continue to stay within the Financial sector.  The reform has done nothing but provide a buying opportunity from its pullback when the Goldman news was released.  Last night we continued to see strong earnings comming from the financial sector.  Capital One and American Express blew away estimates.  It’s clear the consumer is returning and its a strong sign to see such consumer driven companies deliver results as they did. 

Be prepared today for a potential new trade.  There are a few queued but we want to see how we trade during the first 30 to 90 minutes.