Seeking Alpha

MyHappyTrading's  Instablog

MyHappyTrading
Send Message
MyHappyTradingTM is a social network site with a focus on the global financial markets. It is an online community where you can share your thoughts and your investment/trade ideas with the community and the network that you build. Our Basic Membership is FREE. MyHappyTradingTM provides you the... More
My company:
My Happy Trading.com
My blog:
My Happy Trading
  • Thursday Wrap-Up: AIG Leads The Market Back To Green! 0 comments
    Aug 27, 2009 11:33 PM | about stocks: AIG, AMBC, MBI, DELL, MRVL, BA, PCP, RTI

    Today the market opened on the weak side.  Most commodity sectors were pretty weak in the morning.  However, AIG continued to push higher.  Yesterday, in our Trading Room, Bagger Vance made an "buy" alert on AIG:

    Bagger Vance August 26, 2009 11:52 AM (NYSEARCA:PST)
    I'M GETTING AN AIG CALL PLAY ALERT HERE...take a look, if it's over 34 should really run

    In about 30 minutes, AIG shot up and we jumped into call plays.  After the market, AIG went briefly above $40 and I commented:
    HappyTrading August 26, 2009 1:19 PM
    AIG
    almost $40 already; $50 is not out of the question!

    Today, AIG continued to go higher right from the open and went as high as $50.04 (just 4 cents above my target).  Our members were happy to lock in profits that are above +100% overnight and, for some, intraday!
    angar August 27, 2009 8:13 AM
    AIG - happy - 45 is broken.. now what :)
    great call on AIG indeed. Thank you !

    skymist August 27, 2009 8:43 AM
    Sold AIG 40 calls for +127% gain. Wow!

    billbigD August 27, 2009 8:25 AM
    AIG-Gone at $9 from $4.50. Still think it is BS, But thanks BV.

    You can see some more of the comments that I copied from our Trade Room to SeekingAlpha's AIG StockTalks (Click Here).  There were simply too many people shorting this stock.  The buying in AIG is perhaps not as "mindless" as some people might think, as news came out yesterday about AIG listing its Asia unit as an IPO in the Hong Kong market, backed by LFC, the world's largest insurer by market value.

    MBI (+17.5%) and ABK (+46.34%) were among the other beaten-down insurance companies that saw their stocks soar today!  It looks like MBI can easily push higher from here. 

    In the late morning, the unabating buying in AIG seemed to inspire the other financials stocks to rally.  Once the financial sectored started to rally, other sectors followed.  Oil started to rise and the commodity sectors turned green.  Dollar ended lower.  By the time the closing bell rang, major indices had all come back to green.  The Dow finished up +37.11 points; SPX added +2.86 points; Nasdaq gained +3.3 points:

    USO (oil) added +2.08%.  XME (metals and mining) edged up +0.32%, while GDX (gold miner) rose +1.93%.  XLF (financials) gained +1.03%.  FXI (Chinese ADRs) was flat.

    SPX

    SPX added +2.86 points to close at 1030.98.  Its daily MAs went higher and the MACD edged up.

    Nasdaq

    Nasdaq gained +3.3 points to close at 2027.73.  Its 10-day MA and MACD were flat.

    The market managed to hold its bullish stance, although we certainly have witness some indecision in the past few trading sessions.  Still, better economic news continued to roll in.  This morning, both the GDP and jobless claims reports were better-than-expected.  Individual companies also have positive things to say.  BA shares jumped +8.36% after it set a date for the first flight of its best-selling 787 jetliner.  PCP announced that it would pay $850 million to buy Carlton Forge Works, which makes parts for aircraft engines and is a key supplier for the Boeing 787.  PCP shares popped +9.45%.  RTI, which produces titanium mill products and complex engineered assemblies, mainly for the aerospace and defense industries, also benefitted from BA's news.  RTI shares soared +21.49%!

    After the market, DELL beat its earnings estimates and saw its shares rise +3.04% on top the +6.7% gain during the regular session.  MRVL had more good news to add.  Not only was its earnings better-than-expect, its forecast on future earnings was also good!  MRVL traded more than +9% higher in after-hours. 

    Good night and HappyTrading! ™

    Stocks: AIG, AMBC, MBI, DELL, MRVL, BA, PCP, RTI
Back To MyHappyTrading's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.