Day 29
Situation:
U.S. Markets: Sold off heavily after Ben Bernanke hinted at up to 500 bln$ losses on subrime related assets. Adding to the pressure were his remarks that he expects weak housing- and equity markets.
Bond Insurers lost around half of their value as Moody’s put outlook to negative, sparking fears of more write offs to come.
After the close IBM popped up 5% on good numbers and outlook. WaMu reported 1.87bln$ loss on subprime.
Today is January expiration day. (pls. read here)
Asian Markets: After an initial hit on the U.S. fall, markets recovered, Japan is up on the day.
Commodities/Currencies : Oil trading below 90$ on recession fears. Gold below 880 again on profit taking. YEN is said to rise to 100 against the $, officials state. Euro recovering a bit as ECB officials talk hawkish again. Cypriot finance minister said, a rate HIKE(!) would be best for all 
Events: January EXPIRATION!!! US … Michigan, Leading Indicators, General Electric and Schlumberger report. Europe: UK retail sales
Ideas/Strategy: Expiration day, so trying to fish some points, still favoring the downside.
supports: 7410 … 7373 … 7330 … 7290
resists: 7500 … 7511 … 7525/30 … 7550 … 7595 … 7615
Tags: Bernanke, daily outlook, IBM, subprime, WaMu
