Saturday, December 29, 2007

Bear lose steam.

Will the bears lose steam and succumb to the bulls come this Monday for the year-end big bang?Maybe yes!
It's Bear Stearns.Billionaire investor Joseph Lewis on Wednesday revealed that he raised his stake in Bear Stearns for the second time this month, while shares of the fifth-biggest U.S. securities firm declined.
The 70-year-old high school dropout first bought a 7% stake in September and raised it to 8% earlier this month. He now owns 9.6%, according to a regulatory filing Wednesday. That makes him the company's largest shareholder, according to data compiled by Bloomberg, ahead of James Barrow, who oversees $50 billion as the president of Barrow Hanley Mewhinney & Strauss in Dallas.
Lewis has spent more than $1 billion accumulating his stake in Bear Stearns (BSC), which has seen its market value tumble on concern that the collapse of the U.S. subprime mortgage market would erode profits. Lewis' original purchases briefly sparked speculation that the firm might be for sale.
Born in an apartment above a pub in London's East End, Lewis left school at 15 to become a waiter in his father's catering company. He expanded the business into a chain of eateries and opened tourist souvenir shops in Geneva, London and Rome. Lewis got into currency trading as a means of investing receipts from his pubs and shops.
Two Bear Stearns hedge funds that bet on mortgage-linked securities failed in July, wiping out $1.6 billion of investor capital.
The opening bulls have started the year-end rally pace but were shortlived.
Sales of new homes have plunged even more than expected to their lowest level in more than 12 years, leaving the market glutted with unsold homes and pointing to more trouble ahead for the battered housing market.
New home sales tumbled 9 percent in November to a seasonally adjusted annual rate of 647,000, according to a Census Bureau report Friday.
Upon released of the above data at 10:00am (ET) the bears made a stampede back to the valley but have gone on a wrong course.At the mid-session of the day,the bulls have shown their might and brought the trail back near the Moving Average heading for the bull-county.Yeah!it's the bullish dragonfly in the final closing bell.
Hey,sorry folks,,,it should be a Morning Doji Star Not evening star.
On Monday there's another existing Home Sales data coming out 10:00am (ET).
It's going to be a 2 way traffic,the upper shadow is reserve for the year end rally while the lower shadow will be used for the housing data if the released result is lousy.
But end of the day is still the muscle of the bull.
Posted by benhctan at 5:00 AM