Monday, April 6, 2009

At the peak of Friday's rampage, the short squeeze in Goldman had gained 65% from early March's lows. Our target most immediately is 120.34, but if the stock gets past it by more than 20 or so cents, look for the rally to continue

March's powerful thrust has the potential to produce a follow-through to as high as _____, but buyers will likely need to consolidate for another 5-8 days before they're ready to run.

The futures were sinking fast Sunday night, bound for a minor Hidden Pivot support at _____ that can be bottom-fished with a three-tick stop-loss. Be prepared to jump out of harm's way if the stop is hit, however, since that would be signaling more downside to

The futures were chomping on the bit Sunday night, grinding away at an 844.50 resistance noted here last week that should have withstood more punishment. Any further upside would need to surpass

Sellers turned timid after bullying the futures down to within three ticks of a key low at 885.00 recorded in mid-March. The support looks much too obvious to work, and so we should prepare for more weakness this week down to at least

A recent story in the Wall Street Journal explained how the newly jobless may be eligible for employer-sponsored health insurance coverage at drastically reduced rates. Sounds like good news, right? Not if you're an insurance agent. In fact, it's a kind of reverse stimulus for those who make their living selling health coverage. Until now, a substantial portion of their business came from workers who had recently lost their jobs, since many newly unemployed workers are under pressure to replace workplace coverage with more affordable plans. Although the employees are legally entitled under federal law to "Cobra" their old coverage for up to 18 months, the costs can be quite high, especially if the original plan contained generous prescription benefits, low co-payments and other perks. Often, by bumping up co-pay amounts and reducing benefits somewhat, an insurance agent can coverage comparable to Cobra for significantly less. Now, though, with the government subsidizing 65% of the cost of a Cobra plan, the insured has no incentive to shop around. With the subsidy, a plan that would cost a worker $450/month can be had for just $150. One agent we know said the subsidy would have a devastating impact on insurance agents who specialize in health care.  "This is the law of unintended consequences," he said. "The government thinks it's applying a stimulus, but it's just going to throw taxpayer money at higher-cost plans," while reducing the incentive of laid-off workers to look for a better deal. Retroactive, Too! The plan will be retroactive, allowing workers who did not initially opt for Cobra coverage to do so now.  They will also be able to apply for a refund on premiums paid after the subsidy law was enacted on February 17.  The number of workers who extend coverage through Cobra has been relatively small