The Edge: Nine to Watch in the Last Week of ’09

The Trading Edge with Derek Hoffman1) 3% of the daily volume on the NYSE is now under scrutiny: Stevie Cohen is being hawked by the master FBI regulator B.J. Kang ‘The Conquerer.’ A knockout punch to SAC could send a shock wave of volatility through the global financial markets.

2) The Santa Claus Rally: Since 1950, the S&P has increased an average of 1.5 percent during the seven trading days that start with Christmas Eve and end with the first two days in January. That’s the widely recognized period for the Santa Claus Rally, as first identified in 1972 by Stock Trader’s Almanac founder Yale Hirsch.

3) Health Care: Insurance companies stand to heavily profit from the new bill being passed soon.

4) Tech: Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are the new long standing powers.

5) Bank Crash: Total # of Bank Failures hits 140 this year, compared to 25 last year.

6) Brand Name IPOs: Rosetta Stone (NYSE: RST) has sunk from $28 to $16. Meanwhile, Vitamin Shoppe (NYSE: VSI) has risen from $18 to $21.

7) Cheap Mortgages: Mortgage Rates are hovering around 5%, the lowest since Freddie Mac began its weekly interest rate survey since April 1971.

8) Gold: Near-term pullback in effect with shorts covering their Dollar Trade.

9) Black Gold: U.S. Oil Fund (NYSE: USO) is range bound between $30-40 since May ’09. If snow storms galore continue, look for USO to steadily rise and break above the $40 level again.

Disclosure: Long Gold.

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