Jul 10
14
Southridge Capital Pleased on Dow Jones 5% Increase
Southridge Capital was pleased to see the Dow Jones Industrial Average increase over 5% last week (the week ended 7-9-10). As students of the stock market know, the week before the Fourth of July (a shortened week itself), the Dow fell over 455 points.
Southridge Capital continues to believe that there is a lot of news, from espionage to sports which put positive energy in the Market. The first positive story was the Russian spy swap where Russia swapped 4 American agents (spies) in prison, for 10 Russian agents (spies) who just were apprehended in the US. We think the quick actions by both governments to not let this become a problem and further hurt relations helped the overall markets. Where is James Bond when he’s needed?
Secondly, we feel the change from General Stanley McChrystal to General Petraeus in military command in Afghanistan gave the market a fresh look at the war in Afghanistan. From the sports side, the most anticipated free agent in the basketball world Lebron James announced he was playing for Miami. The options on Cablevision, which owns the Knicks increased dramatically days before the announcement. Ditto for MSG – Madison Square Garden. (Although the news that LeBron was headed to South Beach hurt MSG, Cablevision apparently continues to benefit from its other sources of revenue.)
From the corporate side, Google which is down over 20% this year is now making its way back to China. Google pulled out of China for censorship reasons, and has stuck a deal which should help them regain some footing in China. Lastly, Apple is set to open a flagship store in Shanghai; this should help sales for the biggest tech company in the USA. Southridge Capital believes that all this positive energy will put investors in the right frame of mine!