Friday, August 17, 2007
Now the World Falls Too
Both the FTSE in the UK and the Nikkei in Japan dropped over 4% and 5% repsectively yesterday. The fear in the US is spreading globally.
In the US it was yet another rollercoaster day with the markets bouncing back of seriously low intraday lows. The Dow closed the session at 12,845.78, a loss of 15.69 points. The SPX actually moved into positive territory on the session by 4.57 points to close at 1,411.27.
Stock struggled in the morning on disappointing economic news and comments from a Fed leader that lowered the odds of a Fed rate cut in the near term. However, after officially correcting at 10 percent declines from their highs intraday (the SPX went as low as 1370), the major market indices battled back.
The Fed announced that it continued to add liquidity to the financial markets by injecting $17 billion in temporary reserves via 14-day overnight repos. This seems to be the extent the Fed is willing to do at the moment with St. Louis Fed President Poole stating only a calamity would convince the Fed to cut rates.
It will be interesting to see whether there is any type of follow through today. My guess is that it might be difficult for traders to hold stocks over the weekend when every negative credit related news announcement sends stocks lower. We'll see.
As for us September is a 5 week trading cycle. An eternity in this market.
Until next time.
In the US it was yet another rollercoaster day with the markets bouncing back of seriously low intraday lows. The Dow closed the session at 12,845.78, a loss of 15.69 points. The SPX actually moved into positive territory on the session by 4.57 points to close at 1,411.27.
Stock struggled in the morning on disappointing economic news and comments from a Fed leader that lowered the odds of a Fed rate cut in the near term. However, after officially correcting at 10 percent declines from their highs intraday (the SPX went as low as 1370), the major market indices battled back.
The Fed announced that it continued to add liquidity to the financial markets by injecting $17 billion in temporary reserves via 14-day overnight repos. This seems to be the extent the Fed is willing to do at the moment with St. Louis Fed President Poole stating only a calamity would convince the Fed to cut rates.
It will be interesting to see whether there is any type of follow through today. My guess is that it might be difficult for traders to hold stocks over the weekend when every negative credit related news announcement sends stocks lower. We'll see.
As for us September is a 5 week trading cycle. An eternity in this market.
Until next time.
# posted by Paul @ 1:03 AM 
