by Arnold Joe
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I’ve done a number of trades (see below) in the last few days, as a result of all the trades, my exposure to the oil patch is only the call options on Nexen Inc, as I sold heavily overweighted positions in Petro-Canada positions as well as my Nexen stock positions for gains.
If you’ve been following […]
Looks like I was wrong about BCE Inc options being mispriced as the stock did trade higher on Monday but the high was only $38.12 Cdn. I thought BCE would trade between $38-39 Cdn, but instead the trading range was closer much closer to $37. Since the Telecom sector isn’t something I’m familiar […]
Economics:
The US ISM (a manufacturing index) in May showed some slight improvement, but still showed the sector was contracting with a reading of 49.6 up from 48.6…any reading less than 50 indicates contraction. Not surprising, the employment sector had another weak reading of 45.5 and the prices paid component hit an 87% which is […]
Oil:
It was a big day in oil today as the price dropped over $4 to $126. It wasn’t the weekly US oil inventory that caused the drop as the volumes dropped almost 10 million barrels from the previous week; this was the largest drop since the 2004 hurricane season. The drop in inventories was […]
Interest Rates:
The FOMC did as expected and cut short term interest rates by 25 basis points and as you would expect they also signaled their concern about inflation even though fighting inflation isn’t their priority.
Economics:
Stagflation from the US might be spreading to Canada as monthly GDP in February dropped 0.2% and the industrial producer price […]
Recap:
Wow, another big day in the market with the Dow up 228 and the TSX up 121. Citigroup posted another loss of $5 billion after writing down another $15 billion of assets. Oddly enough the markets were happy with the results, as they were neither as bad as the previous quarter $-10 billion, nor as […]
