Naked Hedge Fund Weekly #36

I need a vacation.

YTD 6 trading days. YTD NHF Portfolio +0.42% vs S&P 500 -1.1%

Below is a PDF with the Naked Hedge Fund weekly.  Click on it for the 2 page report.

NHF Weekly 7-25-10

A strong week for U.S. equity markets following better-than-expected second quarter earnings reports. The major averages ended on a strong note, rallying Friday following the release of the highly-anticipated European banks stress tests results.

Economic issues resurfaced on Wednesday following the release of Federal Reserve Chairman Ben Bernanke’s semi-annual monetary policy report. He disappointing the market by focusing on the uncertainty still in the marketplace, saying the economic outlook remains “unusually uncertain” and the Fed remains prepared to take further policy actions as needed.

While economic commentary aided the bears on Wednesday, economic data helped extend gains on Thursday. After the major averages opened sharply higher following a strong batch of earnings results, Existing Home Sales showed a smaller-than-expected decline of 5.1% in June, helping U.S. equity markets reach new highs for the session.

Friday brought the results of the long-awaited European bank stress tests. However, investors spent more time questioning the criteria than trading on the results, and when the smoke cleared the major averages moved higher as the release removed some headline risk from the marketplace.

The Committee of European Banking Supervisors found that seven of the 91 banks failed the stress test under the adverse scenario, with an expected impact on trading books over two years expected to be 54.1 bln euros.

However, many thought the criteria were not much of a stress on the banks. For instance, the “sovereign risk shock” in the adverse scenario made the assumption that there were no defaults.

There is plenty on the docket for next week. The number of companies reporting second quarter earnings will ratchet higher, but there are fewer big names, though the list includes the likes of BP (BP), Boeing (BA), Exxon Mobil (XOM), Sony (SNE) and Visa (V). Economic data/commentary will pick up later in the week with Durable Orders and the Fed Beige Book on Wednesday and the Advance reading for Q2 2010 GDP on Friday. Finally, the next round of Treasury auctions will take place in the middle of the week.

Twitter Digg Delicious Stumbleupon Technorati Facebook Email

One Response to “Naked Hedge Fund Weekly #36”

  1. Hello admin, your site is incredible i know
    very useful tool for every site admin (for content creation and SEO).
    Simply type in google for:
    Stoonkel’s Rewriter

Leave a Reply