Day 9
And we keep on rollercoasting …
Situation:
U.S. Markets: Gained around 1.5% on interest rate cut hopes as consumer confidence was very week and Goldman and Merill both said that rcession risk higher than thought before. And as oil comes down a bit … this as well is (suddenly) thought to be positive *smile* The Citibank deal did not really help them pricewise, but reassured investors that even “badly managed” banks can find money. After the close Wells Fargo took a further 1bln+$ charge and said it will now tighten lending policy and try to sell of 11bln$ subprime portfolio. Freddie Mac halved the dividend and will issue stock for 6 bln$. Both were down, FRE 2% WFC 3.5% in afterhours.
Asian Markets: China market up, but again an IPO fell after being listed (Sinotruck), the rest of the area slightly off, Tokyo on the Yen, which strengthened again, Australia down on fading fantasy for the Rio Tinto BHP deal and on Absolute Capital going “belly up” on subprime.
Commodities/Currencies : Yen firmer … oil with a 93 handle … not too much movements
Events: US … mortgage applications, durable goods, existing home sales, crude inventories and beige book …
Ideas/Strategy: … After yesterday’s move … I wait for some follow up … then try to short it again … as the weekend/monthend will be in focus, so we might see more selling later on … some emerging markets already weak … but as I still face trouble with my trading platform (TT) after Eurex rolled out a new release last weekend … I only hope that I can participate …
supports: 7550 …7498/7503 7465 … 7370
resists: 7600/05 … 7625/30 … 7660 … 7705/10
Tags: Citibank, daily outlook, Freddie Mac, recession, Wells Fargo
