Market should do well today
Mixed news about banks
* UBS writes off $19B
* Deutsche Bank writes off $4B
* Lehman (LEH) obtained $3B in private financing last night.
I think the UBS write-down is shocking but also a relief - it's a touch of reality and a possible sign that they are finally recognizing the extent of the problem.
The LEH move is a positive because many expected it to go belly-up
Removing the uncertainty will boost markets.
I think Financials are bottoming (ETFC looks good for a 2nd bite). But the rest of the market is just not ready. If CF surges, we'll sell the calls that we bought yesterday.
US and Japan are definitely recession bound. I think the EU is 6 months behind. I also think that Chindia are not decoupled from these markets and will turn down as well. My concerns about a global recession are making me feel like adeeper recession will happen.
* UBS writes off $19B
* Deutsche Bank writes off $4B
* Lehman (LEH) obtained $3B in private financing last night.
I think the UBS write-down is shocking but also a relief - it's a touch of reality and a possible sign that they are finally recognizing the extent of the problem.
The LEH move is a positive because many expected it to go belly-up
Removing the uncertainty will boost markets.
I think Financials are bottoming (ETFC looks good for a 2nd bite). But the rest of the market is just not ready. If CF surges, we'll sell the calls that we bought yesterday.
US and Japan are definitely recession bound. I think the EU is 6 months behind. I also think that Chindia are not decoupled from these markets and will turn down as well. My concerns about a global recession are making me feel like adeeper recession will happen.
posted by Andrew at
6:03 AM
1 Comments:
I think the shorts are getting squeezed. I feel the pain. I am almost 20% down on just today :( and another hour to go. Its already close to 400 pts up.
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