Professor Elam
Accounting & Investing Info for San Antonio A & M
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Category: Markets
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A few weeks back I commented that oil might 'poke above 75 and 80 along with stocks to new highs. ' It did just that. now a major test is under way. The important 200 week moving average is in red. ON the one hand, the oil market completed an A B C correction to…
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Japan is still the second largest economy in the world, and it is down 15% in the last few weeks. At bottom the weekly MACD has just begun its descent. Shanghai in purple and oil in black appear to have been topping since this summer. Now let's look at the US That large red…
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The future looks grim for the 4500 Saab employees. A sale to a Swedish firm has fallen through due to financing difficulties. GM has only sold a handful of Saabs here this year. This is the third GM sale to fail this year.
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This will take a bit of study but that is what college is all about, eh? The red and black line tracks the number of stocks trading above their 50 day moving average. The three blue arrows show a pattern of lower highs. This mean fewer and fewer stocks are trading up, more are trading…
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One of the interesting things about teaching ethics is that I never need to search for examples. Each class brings anew list of ethically challenged office holders. South Carolina may begin impeachment proceedings against Gov. Sanford. Roland Burris earns a rebuke from the Senate Ethics oversight group. And in a move sure to make the…
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Times change but the behavior of people does not. Vivid parallels exist between the behavior of people in this time period and in previous periods that reflect the same social mood. The periods of 1920-29, 1954-1966, and 1982-2000 were expansionary and creative. Wealth was created and the mood was upbeat. But such expansion led to…
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Read The Naked Swindle in the Rolling Stone. Someone bought $1.7 M worth of puts on Bear Stearns when the stock was $63, with strike prices 50% lower and only nine days left for expiration. And they paid off 159x. Gee do you think that person had inside information? And the SEC cannot find out…
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WE are discussing derivatives in Intermediate II Accounting. Please read this article on Commercial Real Estate and Commercial Mortgage Backed Securities. CMBS is a derivative. It gets value from the mortgages that it owns. If the mortgages become delinquent, the value of the CMBS will plummet. And the assets, so called, of the banks holding…
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Despite overbought conditions in nearly everything, one sector does seem to march to a different drummer. After what should have been the low, prices bounced in short covering and should now make a higher low. MACD is falling and money flow has lessened at the bottom. I would not expect money flow to go as…
Professor Elam 