{"id":556,"date":"2009-05-03T15:52:31","date_gmt":"2009-05-03T20:52:31","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=556"},"modified":"2023-04-27T11:13:36","modified_gmt":"2023-04-27T15:13:36","slug":"the-week-that-was-april-27-may-1-2009","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/the-week-that-was-april-27-may-1-2009","title":{"rendered":"The Week That Was: April 27 &#8211; May 1, 2009"},"content":{"rendered":"<p>A very interesting week.\u00a0 The SPY continues to linger around just below the 88 level, consolidating near the highs.\u00a0 Tuesday&#8217;s action after the Fed announcement increased volatility, although we haven&#8217;t really gone anywhere.\u00a0 Wednesday morning, it looked like the bulls were regaining control of the tape, but were not able to close the week above the critical 88 level.\u00a0 One thing I&#8217;ve noticed in the price action this week:\u00a0 Although the SPY looks like it&#8217;s getting ready to possibly make another up-leg, the financial sector as a whole has not participated in these new recent highs.\u00a0 Don&#8217;t get me wrong, not all financials are lagging.\u00a0 Both GS and MS have been extremely strong, but as a whole, the sector is lagging and looks like it is stalling.\u00a0 This makes me very cautious about being long at these levels.<\/p>\n<p>That being said, let&#8217;s take a look at some interesting things from the past week:<\/p>\n<p>The rising wedge pattern is still intact on the S&amp;P futures.\u00a0 This is important to realize, because although it looks like the index is breaking out, a closer look tells us this could be a topping pattern where we can expect a pullback of some sort.<\/p>\n<p>This earnings season has <a href=\"http:\/\/bespokeinvest.typepad.com\/bespoke\/2009\/05\/earnings-season-beat-rate-continues-higher.html\" target=\"_blank\" rel=\"noopener\">continued to top analysts estimates<\/a>.\u00a0 With over 75% of companies having reported now, this earnings season is proving to be one of the best in a while, even if it is on significantly lowered expectations.<\/p>\n<p>A little update on some <a href=\"http:\/\/www.ritholtz.com\/blog\/2009\/05\/stress-test-or-reality-check\/\" target=\"_blank\" rel=\"noopener\">troubled asset sales<\/a>.\u00a0 The 33% discount is much lower than what banks are listing assets on their books as.\u00a0 So, as expected, the suspension of mark-to-market accounting is really helping out the banks.\u00a0 The question remains:\u00a0 will these assets ever recover?<\/p>\n<p>As because de-lever, <a href=\"http:\/\/www.ritholtz.com\/blog\/2009\/04\/our-next-troubled-bank-the-fed\/\" target=\"_blank\" rel=\"noopener\">the Fed has been levering up<\/a>.\u00a0 Those assets have to go somewhere.<\/p>\n<p>Citi may <a href=\"http:\/\/www.calculatedriskblog.com\/2009\/05\/wsj-citi-needs-up-to-10-billion-in.html\" target=\"_blank\" rel=\"noopener\">need to raise $10 billion<\/a>. \u00a0 Stress test results are expected to be out on Thursday, after the market close.\u00a0 There have been rumors that the reason for the delay in the release of the results is because the banks are contesting the regulator&#8217;s numbers.\u00a0 Given the assumptions made under the most stressful scenarios, I think they have been shown alot of mercy.\u00a0 But this is the classic case of giving someone an inch, and them trying to take a mile.\u00a0 Some <a href=\"http:\/\/www.nakedcapitalism.com\/2009\/05\/bank-stress-test-dance-of-seven-veils.html\" target=\"_blank\" rel=\"noopener\">more insight into the stress tests<\/a> courtesy of Naked Capitalism.<\/p>\n<p>Another <a href=\"http:\/\/globaleconomicanalysis.blogspot.com\/2009\/04\/400-billion-more-in-bank-losses-on-way.html\" target=\"_blank\" rel=\"noopener\">$400 billion in bank losses<\/a> on the way.\u00a0 It will be interesting to watch how this unfolds, but more importantly how the market reacts to news in the financial sector.\u00a0 Over the last 3 weeks especially, the market has responded very well to capital raises, sending equity prices higher.<\/p>\n<p>Here&#8217;s an analysis of <a href=\"http:\/\/zerohedge.blogspot.com\/2009\/05\/observations-on-nyse-program-trading.html\" target=\"_blank\" rel=\"noopener\">program trading on the NYSE<\/a> lately.\u00a0 GS has increased program trading significantly over the past few weeks.\u00a0 Zerohedge has discussed this in detail, with Goldman finally responding this past week.\u00a0 Some interesting points are raised.\u00a0 This is something I have become increasingly interested in and thought others would be curious to know about.<\/p>\n<p>A very interesting analysis from the <a href=\"http:\/\/www.nytimes.com\/2009\/05\/01\/opinion\/01brooks.html?_r=1&amp;emc=eta1\" target=\"_blank\" rel=\"noopener\">NY Times on genius<\/a>.\u00a0 What has often been attributed as genius in the past was actually thousands of hours or practice and hard work.\u00a0 To touch on what Bella wrote about this past week, you must be committed to working long and hard if you wish to be the best, not just in trading, but in anything you do.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A very interesting week.\u00a0 The SPY continues to linger around just below the 88 level, consolidating near the highs.\u00a0 Tuesday&#8217;s action after the Fed announcement increased volatility, although we haven&#8217;t really gone anywhere.\u00a0 Wednesday morning, it looked like the bulls were regaining control of the tape, but were not able to close the week above the critical 88 level.\u00a0 One &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/the-week-that-was-april-27-may-1-2009\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":167,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[30,18,301],"class_list":["post-556","post","type-post","status-publish","format-standard","hentry","category-general-comments-2","tag-prop-trading","tag-smb-capital","tag-trading-blog","no-post-thumbnail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Week That Was: April 27 - May 1, 2009 | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/the-week-that-was-april-27-may-1-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Week That Was: April 27 - May 1, 2009 | SMB Training\" \/>\n<meta property=\"og:description\" content=\"A very interesting week.\u00a0 The SPY continues to linger around just below the 88 level, consolidating near the highs.\u00a0 Tuesday&#8217;s action after the Fed announcement increased volatility, although we haven&#8217;t really gone anywhere.\u00a0 Wednesday morning, it looked like the bulls were regaining control of the tape, but were not able to close the week above the critical 88 level.\u00a0 One ... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smbtraining.com\/blog\/the-week-that-was-april-27-may-1-2009\" \/>\n<meta property=\"og:site_name\" content=\"SMB Training Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/smbcap\/\" \/>\n<meta property=\"article:published_time\" content=\"2009-05-03T20:52:31+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-04-27T15:13:36+00:00\" \/>\n<meta name=\"author\" content=\"Gualberto\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:site\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Gualberto\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-week-that-was-april-27-may-1-2009#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-week-that-was-april-27-may-1-2009\"},\"author\":{\"name\":\"Gualberto\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/e49ab2da69c1d65da4d7e9d4470a9dfa\"},\"headline\":\"The Week That Was: April 27 &#8211; May 1, 2009\",\"datePublished\":\"2009-05-03T20:52:31+00:00\",\"dateModified\":\"2023-04-27T15:13:36+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-week-that-was-april-27-may-1-2009\"},\"wordCount\":574,\"commentCount\":1,\"publisher\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\"},\"keywords\":[\"prop trading\",\"smb capital\",\"trading blog\"],\"articleSection\":[\"General Comments\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.smbtraining.com\/blog\/the-week-that-was-april-27-may-1-2009#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-week-that-was-april-27-may-1-2009\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/the-week-that-was-april-27-may-1-2009\",\"name\":\"The Week That Was: April 27 - May 1, 2009 | SMB Training\",\"isPartOf\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#website\"},\"datePublished\":\"2009-05-03T20:52:31+00:00\",\"dateModified\":\"2023-04-27T15:13:36+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-week-that-was-april-27-may-1-2009#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.smbtraining.com\/blog\/the-week-that-was-april-27-may-1-2009\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-week-that-was-april-27-may-1-2009#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.smbtraining.com\/blog\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The Week That Was: April 27 &#8211; May 1, 2009\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#website\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/\",\"name\":\"SMB Training Blog\",\"description\":\"Lessons from the trading desk\",\"publisher\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.smbtraining.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\",\"name\":\"SMB Training\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png\",\"contentUrl\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png\",\"width\":230,\"height\":81,\"caption\":\"SMB Training\"},\"image\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/smbcap\/\",\"https:\/\/x.com\/smbcapital\",\"https:\/\/www.youtube.com\/user\/smbcapital\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/e49ab2da69c1d65da4d7e9d4470a9dfa\",\"name\":\"Gualberto\",\"sameAs\":[\"http:\/\/gualbertodiaz.com\"],\"url\":\"https:\/\/www.smbtraining.com\/blog\/author\/gdiaz\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Week That Was: April 27 - May 1, 2009 | SMB Training","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.smbtraining.com\/blog\/the-week-that-was-april-27-may-1-2009","og_locale":"en_US","og_type":"article","og_title":"The Week That Was: April 27 - May 1, 2009 | SMB Training","og_description":"A very interesting week.\u00a0 The SPY continues to linger around just below the 88 level, consolidating near the highs.\u00a0 Tuesday&#8217;s action after the Fed announcement increased volatility, although we haven&#8217;t really gone anywhere.\u00a0 Wednesday morning, it looked like the bulls were regaining control of the tape, but were not able to close the week above the critical 88 level.\u00a0 One ... Read More","og_url":"https:\/\/www.smbtraining.com\/blog\/the-week-that-was-april-27-may-1-2009","og_site_name":"SMB Training Blog","article_publisher":"https:\/\/www.facebook.com\/smbcap\/","article_published_time":"2009-05-03T20:52:31+00:00","article_modified_time":"2023-04-27T15:13:36+00:00","author":"Gualberto","twitter_card":"summary_large_image","twitter_creator":"@smbcapital","twitter_site":"@smbcapital","twitter_misc":{"Written by":"Gualberto","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.smbtraining.com\/blog\/the-week-that-was-april-27-may-1-2009#article","isPartOf":{"@id":"https:\/\/www.smbtraining.com\/blog\/the-week-that-was-april-27-may-1-2009"},"author":{"name":"Gualberto","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/e49ab2da69c1d65da4d7e9d4470a9dfa"},"headline":"The Week That Was: April 27 &#8211; May 1, 2009","datePublished":"2009-05-03T20:52:31+00:00","dateModified":"2023-04-27T15:13:36+00:00","mainEntityOfPage":{"@id":"https:\/\/www.smbtraining.com\/blog\/the-week-that-was-april-27-may-1-2009"},"wordCount":574,"commentCount":1,"publisher":{"@id":"https:\/\/www.smbtraining.com\/blog\/#organization"},"keywords":["prop trading","smb capital","trading blog"],"articleSection":["General Comments"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.smbtraining.com\/blog\/the-week-that-was-april-27-may-1-2009#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.smbtraining.com\/blog\/the-week-that-was-april-27-may-1-2009","url":"https:\/\/www.smbtraining.com\/blog\/the-week-that-was-april-27-may-1-2009","name":"The Week That Was: April 27 - May 1, 2009 | SMB Training","isPartOf":{"@id":"https:\/\/www.smbtraining.com\/blog\/#website"},"datePublished":"2009-05-03T20:52:31+00:00","dateModified":"2023-04-27T15:13:36+00:00","breadcrumb":{"@id":"https:\/\/www.smbtraining.com\/blog\/the-week-that-was-april-27-may-1-2009#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.smbtraining.com\/blog\/the-week-that-was-april-27-may-1-2009"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.smbtraining.com\/blog\/the-week-that-was-april-27-may-1-2009#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.smbtraining.com\/blog"},{"@type":"ListItem","position":2,"name":"The Week That Was: April 27 &#8211; May 1, 2009"}]},{"@type":"WebSite","@id":"https:\/\/www.smbtraining.com\/blog\/#website","url":"https:\/\/www.smbtraining.com\/blog\/","name":"SMB Training Blog","description":"Lessons from the trading desk","publisher":{"@id":"https:\/\/www.smbtraining.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.smbtraining.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.smbtraining.com\/blog\/#organization","name":"SMB Training","url":"https:\/\/www.smbtraining.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png","contentUrl":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png","width":230,"height":81,"caption":"SMB Training"},"image":{"@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/smbcap\/","https:\/\/x.com\/smbcapital","https:\/\/www.youtube.com\/user\/smbcapital"]},{"@type":"Person","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/e49ab2da69c1d65da4d7e9d4470a9dfa","name":"Gualberto","sameAs":["http:\/\/gualbertodiaz.com"],"url":"https:\/\/www.smbtraining.com\/blog\/author\/gdiaz"}]}},"_links":{"self":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts\/556","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/users\/167"}],"replies":[{"embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/comments?post=556"}],"version-history":[{"count":1,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts\/556\/revisions"}],"predecessor-version":[{"id":54795,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts\/556\/revisions\/54795"}],"wp:attachment":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/media?parent=556"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/categories?post=556"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/tags?post=556"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}