No more upside left???
After only one week into Q2, markets look tired …
First earnings, which came in, really couldn’t excite traders or investors.
European equities getting sold on UK figures and a “NO CUT” rate outlook for main Europe.
US equities already under pressure as buying runs out … and that even before having tested the decisive 1395/1400 S&P level.
Market is stuck for the moment and waits for fresh news … earnings, rates, politics, housing, credit derivatives … what ever it will be …
So let’s wait and see …
IMF warned today, that subprime and related losses could mount to close to 1.000 BILLION $ …
So the stuation isn’t, but the upside could be well CONTAINED 
Remember … flexibility is KING at the moment … Yes, I’m bearish … but I would love to test the upside!!!
C’mon BEN show us some flavor 
Tags: Bernanke, financials, IMF, outlook, Q2
April 9th, 2008 at 01:36
Oli,
Dollar is at the bottom of a range on its long term downtrend…. Likely the dollar will stage a recovery here… for a bit i would think. I wouldnt be surprised if the catalyst for the next move here is an ECB rate cut.
Financials (US) are in a long term writeoff scenario… Make rate differential profits, write off, make profits, write off, borrow some more, write off, etc But with the Paulson Put in play - no large or medium organizations will be allowed to fail. Total worldwide eventual losses will likely be in 1.2 T range. But over half maybe outside the US. So far, over 50% has been in banks and corporations outside the US.
US Employment is about to get ugly so are March consumer numbers.
April 9th, 2008 at 07:43
Agreed … BUT the ECB won’t cut … NEVER
… If they did now, panic would come into play …