Conspiracy Theory on Euro Zone Crisis

There's a conspiracy theory out there that tries to explain what's happening in the global financial market today. The theory goes like this: The US has been in a weak financial position due to the credit crisis occurs in past 3 years. China has been gaining economically since then. The US will not sit back quietly and watch as the East rises. By triggering a debt crisis in Greece, the US is killing several birds with that proverbial one stone.

One, it is dealing a blow to Chinese foreign reserves held in euros. China has been selling its US-dollar holdings and switching to euros. Two, in the ensuing panic, the US dollar strengthens because it is seen as the more stable currency. And three, the US could have already placed bets against the euro or eurozone instruments. The crisis is an opportunity for it to refill its coffers - just as it did during the Asian financial crisis.

While most conspiracy theories are eventually proved to be more fiction than fact, they do make for interesting dinner conversations.

Two ETFs to bank on: FAZ and FAS

Financial stocks return to the highlight in recent Greek crises. The financial stocks become either biggest loser or gainer in the past two weeks. The volume of these two ETFs have increased significantly.

However, due to the leverage nature, these two ETFs are meant for the short term trading. It can be used to take the short term profit or to hedge your long positions against the downturn. For instance, seeing the increased bad conditions in Euro zone, you might want to use FAZ, the Direxion Financial bear fund to hedge the exposure.

Have a look at the links below for the detail coverage:
ETF DAILY NEWS » The Most Bank For Your Buck With These Direxion 3X Financial ETFs (FAS, FAZ)
Want to Bet Big on Banks? Try These Triple X Funds - CNBC

Two shares soar when markets tank

This week, majority sessions are ending in red. Rumour and glitch in trading system on Thursday have triggered the massive sell off, Dow Jones at one point sink close to 1000 points.

However, two shares in my watch list shoot up high as markets drops. They are the inverse/bearish ETFs offered by ProShares and Direxion Funds. These two ETFs bet against the financial sector with leverage feature; They are:

• ProShares UltraShort Financials (ETF), SKF
• Direxion Daily Finan. Bear 3X Shs (ETF),  FAZ

These two shares have gone up high in 2008 - 2009 financial crisis, correction in last Jan/Feb. It would be a good choice to hedge against the downtrend, or ways of earning some handsome profit while waiting a chance to buy at dip.

Eastman Kodak Company continue in downtrend

After recovering a small percentage yesterday, Eastman Kodak continues in downtrend, returning to the level in early April.

Prior its earning report, the shares of Eastman Kodak has been raising, anticipated by the market with powerful earning. The shares at one point reached $9 mark. However, after the disappointed earning report, much lower than market expectation, the shares has been sinking.

Technically, the shares will continue trend down. The company is expecting flat revenue this year, however, Eastman Kodak still has a great number of patents in imaging. Could it be another take-over target, like PALM?

Shares of U.S. chipmakers sink after Samsung's comment

Shares of U.S chipmakers sink after Samsung's comment on the excess inventory. Samsung warned that the low-end DRAM memory chip market may go into oversupply by the year's end. 

The Philadelphia Semiconductor Index, SOX, a price-weighted index composed of 18 U.S. semiconductor companies primarily involved in the design, distribution, manufacture, and sale of semiconductors, closed down 4.5 percent. 

Here are some of big losers in this sector:

Micron Technology, Inc (Nasday:MU) fell 8.4 percent to $9.35

Advanced Micron Device, Inc (NYSE:AMD) fell 6.8 percent to $9.06

SanDisk Corporation (NASDAQ:SNDK) fell 5.2 percent to $39.84

NVIDIA Corporation (NASDAQ:NVDA) down 5.7 percent to $15.71

Intel Corporation (NASDAQ:INTC) down 2.8 percent to $22.84

Recent Sell off of Eastman Kodak Company (NYSE:EK)

Shares of Eastman Kodak was the big loser for the last two sessions, its share fell sharply, more than 10% in both sessions. The recent sell off was triggered after the company announced first quarter profit that much lower than Wall Street expectation.

The company earned $119 millions, or 40 cents per share, while average estimate of analysts came in at 79 cents a share. The company expects to lose $50 to $150 million this year on flat revenues.

Eastman Kodak returned to profitability in Q4 last year, after years of restructuring and catching up its competitors in the imaging sector.