MarketPulz

News Today - June 02

* Stocks rallied Monday, sending the Dow Jones industrial average near the break-even point for the year. The Dow surged 229 points, or 2.6 percent, according to early tallies. Shares of General Motors closed 8 percent higher after the automaker declared bankruptcy. full story

* J.P. Morgan and AmEx announced unexpected plans to sell stock after the government said large banks must first prove they can raise money from private investors before exiting TARP.

* Chrysler could exit bankruptcy reorganization as soon as Monday. A judge approved the sale of most of Chrysler's assets to alliance partner Fiat.

* US Treasury Secretary Timothy Geithner said Chinese officials are confident in the U.S. economy and the Obama administration’s actions to fight the recession and restore financial stability.

* Air France plane with 228 people on board was presumed to have crashed into the Atlantic Ocean on Monday after hitting heavy turbulence on a flight from Rio de Janeiro to Paris.

Coppock Indicator gives a buy signal for DOW

The Coppock Indicator, a highly regarded market timing indicator, issued a buy signal For DOW at the close of trading on Friday.

what is the Cappock Indicator ?
The Coppock Indicator is quite an unusual component of technical analysis in that it based upon a psychological "period of mourning" to identify buy signals after a time of bearish activity. The indicator was created by Edwin Coppock and was first published in Barron's Magazine in 1962.

The Cappock Indicator is regarded to be one of the most accurate indicators in predict market bottoms and signals for Long term Investments. But it also has had some major missteps. The Coppock Guide gave a buy signal in December 2001, for example, nearly a year prior to the final low of the 2000-2002 bear market. And the indicator appears to have also flashed two premature buy signals during 1931, at levels well above the market's mid-1932 low. Lets see how accurate it works this time.

Inputs From :

Mark Hulbert, MarketWatch
http://www.marketwatch.com/story/coppock-guide-finally-issues-a-buy-signal

http://www.trading-talk.co.uk/technicals/technical-analysis---coppock-indicator.html

Previously

Dow Theory Tells you to sell,It turned out to be right
http://marketpulz.blogspot.com/2009/02/dow-theory-tells-you-to-sell.html

Biggest US Bankruptcies

Five out the the top ten biggest bankruptcies in US happened during this Economic crisis. General Motors the latest one to add in the list features at the 4th place, Another auto giant Chrysler filed Bankruptcy about a month ago and is the seventh biggest so far in the US history.

1. Lehman Brothers - investment banking (2008)
2. Washington Mutual - savings and loan holding (2008)
3.WorldCom - telecom (2002)
4. General Motors - auto (2009)
5. Enron- energy (2001)
6. Conseco - insurance and finance (2002)
7.Chrysler - auto (2009)
8.Thornburg Mortgage Inc - residential mortgage lender (2009)
9. Pacific Gas and Electric Company - electricity and natural gas (2001)
10.Texaco - petroleum major (1987)

GM Files Bankruptcy

General Motors Corp, the world’s largest carmaker until its 77-year reign ended last year, filed for bankruptcy protection in the U.S. with a plan to create a 21st-century company that can compete in world markets.

GM reported $82.29 billion in assets and $172.81 billion in debt. The U.S. government will bankroll the transformation of the 100-year-old automaker, a victim of tumbling sales and higher gas prices. The U.S. plans to convert much of its $50 billion of loans to a 60 percent stake in the new entity, administration officials said. Today’s filing coincides with a deadline for GM to convince a government auto task force that it could reorganize out of court through debt and cost cutting.

The future of thousands of car industry jobs in Europe remain uncertain as General Motors files for bankruptcy after reaching a deal to sell off its European operations, including German automaker Opel.

Source : http://www.bloomberg.com/apps/news?pid=20601087&refer=top_news&sid=aZ94r84yT8Ds

http://edition.cnn.com/2009/BUSINESS/06/01/gm.europe/index.html

Investors sceptical on stock market rebound

The majority of the world’s leading investors do not believe the recent strong performance of stocks and other risky assets is sustainable, according to a report released on Monday.

The FTSE All World equities index has surged more than 60 per cent since hitting a low for the year in March.

But Barclays Capital has revealed that just 17.5 per cent of the 605 investors interviewed for its quarterly FX investor sentiment survey – including central banks, asset managers, hedge funds and international corporate customers – think risky assets have further to rise.

his is one aspect of a generally gloomy outlook for the global economy, which undermines optimism that “green shoots” of recovery are starting to emerge.

Just 4.5 per cent of respondents believe the trajectory of the global economy over the next year will be “V-shaped” – indicating weakness followed by a sharp recovery.

The majority, 69 per cent, believe the path of the global economy will be either “U-shaped” or “W-shaped”, meaning that growth will remain weak for some time before a gradual recovery begins, or that a recovery will prove temporary and renewed weakness will set in.

By Peter Garnham in London

http://www.ft.com/cms/s/0/52c9f2a8-4e1a-11de-a0a1-00144feabdc0.html

News Today - June 01

Geithner heads to china

* General Motors, the nation's largest automaker and for decades an icon of American manufacturing, stood on the brink of a bankruptcy filing and a de facto government takeover on Monday. full story

* US Treasury Secretary Tim Geithner is set to meet with several high-ranking members of the Chinese leadership this week, marking the Obama administration's first major overture to the powerhouse nation.

* Chinese manufacturing expanded for a third month in May, indicating the economic recovery remains intact and helping to erase concerns the world's third-largest economy was beginning to lose momentum.

* Heavy job losses battered American families again in May, economists say, erasing almost all the employment gains over the past decade.

* India Inc feels the economy has started recuperating and can move to a higher growth trajectory in the next few months, as per a survey by industry body FICCI. Half of the companies that took part in the survey posted better growth in the fourth quarter of 2008-09 compared with the previous two quarters.