Day 19
Situation:
U.S. Markets: Markets sold off again after the huge gap, caused by the moves on liquidity by the centralbanks. We traded down to new lows before recovering 20 S&P points into the close on rollover … NEW FRONTMONTH on the US equities from TODAY on … MARCH 2008 … so S&P is 10 points “higher”, the NQ 19 … even without the rumoured cut of the discount rate … media cited as reason for the sell off, that the FED had a conference call with its primary dealers making clear that the “new” liquidity will be only available to commercial banks, not investment banks … again adding to the confusion about the FED communication. (pls. read my last post)
Biogen plummeted about 27% in afterhour trading as they received NO OFFER for the company during the period they put themselves on the block … I think it is more the creditcrunch than the company …
Asian Markets: Markets trade down on weak financials due to new subprime concerns … between 1,5 and 2%.
Commodities/Currencies : The Yen weakened a lot on revived interest in the carry trade … Oil spiked 5% to 94$. Bonds sold off heavily, recovering a bit as stock markets retreated
Events: US … PPI, Retail Sales, jobless claims, business inventories … Europe … ECB monthly report … UK CBI Industrial Trends
Ideas/Strategy: After yesterday’s moves … waiting for new ideas … Dax hugely outperformed all other markets … this could continue … as we have a new front month in the US … rumour mill spinning fast and a lot of data to value … a backseat position seems to be of value 
supports: 8040/45 … 8010 … 7970 … 7940 … 7915 … 7865 … 7850 … 7800/06 … 7760/65 … 7725
resists: 8120/30 … 8217 … 8230 …
Tags: Biogen, Bonds, carry trades, daily outlook, FED, Oil
