Is 1,343 the Magic Number?

Monday, May 14, 2012

Is 1,343 the Magic Number?

Wall Street (Photo credit: b00nj)

Last week represent a challenge for Wall Street. The major indexes fell to levels very close their areas of support. The market reacted trying to find this level of support and then start a new bull run.
However, the bad (very bad) news of JP Morgan formed a new reason to push andmarket down again.
Today, markets in Asia and especially in Europe, have shown a negative behavior. WallStreet faces a new hard day. The main danger is now to break support levels the market, opening the possibility of a much larger drop for the following weeks.
This is especially critical to the SP-500. This index has a "very important" level of support at 1.343 points. That's the number to continue to this day. If the SP-500 closes below that level, we could be in trouble.

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Benjamin Graham Was A Crappy Hedge Fund Manager

Jack Bogle, the outspoken godfather of index funds and passive investing strategies, didn't approve of a recent Wall Street Journal article defending hedge funds.

In particular, he took issue with the author's reference to Benjamin Graham, the legendary Columbia finance professor who literally wrote the book on Security Analysis and mentored Warren Buffett.

Bogle wrote a letter to the editor. Here's an excerpt: Citing Benjamin Graham as the first "hedged fund" operator is an especially unfortunate example. "The trick," Mr. Rice writes, was Graham's "clever way to make money . . . whether it [the market] continued to rise, or started to fall." ...

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By The Big Picture

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This is wrong; it is legalized theft.

If you want to see a good example of how CEOs transfer shareholder wealth to themselves, a good place to start is Roger Lowenstein’s 2004 book, Origins of the Crash: The Great Bubble and Its Undoing. The section on CEO compensation is astounding; these guys were essentially getting wildly overcompensated for being CEOs during a bull market. The prime example was the CEO of Heinz, who gave himself (with the tacit approval of his Board of~~Crony~~ Directors) a $90 million bonus. And this was back in the early 1990s, when $90 million was real money.

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www.ritholtz.com

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...

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6 Tips to Work From Home Successfully

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Today's top Green Energy Good News

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Texas is set to double its wind energy generation from 60 gigawatts to 120 gigawatts in 2013.

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Monday, May 14, 2012