The Dow closed down 227 points to 12,601.19.
As oil hit 135p.b. around the world, Asia started to feel the heat of the higher price.
And while Iceland's central bank may raise its benchmark interest rate today for the third time this year, certain countries are seriously watching the pressure, oil and other inflationary "add ons" might have on their economy.
Stagflation is the word that keeps rearing its ugly head.
As defined by Wiki:
http://en.wikipedia.org/wiki/Stagflation
One of the most popular tools used in portfolio management today are ETFs.
Some of the ETFs available are constructed to return more than others.
Here is a great article on several of the more leveraged opportunities in ETFs.
http://www.marketwatch.com/news/story/proposed-etfs-would-magnify-stock/story.aspx?guid=%7B3D68AF7C%2DCCBF%2D494A%2D84BC%2D9E367BFA8134%7D
http://www.reuters.com/article/marketsNews/idUSTKU00329320080522
Good Fortune from Trade Equity!!!
Wednesday, May 21, 2008
Market LunchBox
The Dow started a back and forth pattern this morning, but Fed Minutes combined with oil coming in 5 million barrels short on the crude report drove oil above $133 p.b. and drove the Dow to 225 points down.
The Dow has currently bounced back to 202 down.
The Fed said today that they would not lower interest rates further unless the market conditions fell off the cliff. They also said that they see worse times due to unemployment, and inflation.
The VIX was up today over 5% to above 18.
We are watching and own NIHD, VMW, LDK, OSK, DBA, and SDTH.
LDK is the star performer today and yesterday. We look for this stock to hit 60+ before September.
Oil is up currently 4.57 to $133+. On CNBC today, there are people on their that are saying the oil demand will not slow growth dramatically. That is hard to believe.
We see technology reap the benefit of people slowing down on transportation, and doing more and more work, buying, and all other activites online. The popularity of the gaming community right now is a precursor to the ability society has to embrace online activity.
Good Fortune from Trade Equity!!!
The Dow has currently bounced back to 202 down.
The Fed said today that they would not lower interest rates further unless the market conditions fell off the cliff. They also said that they see worse times due to unemployment, and inflation.
The VIX was up today over 5% to above 18.
We are watching and own NIHD, VMW, LDK, OSK, DBA, and SDTH.
LDK is the star performer today and yesterday. We look for this stock to hit 60+ before September.
Oil is up currently 4.57 to $133+. On CNBC today, there are people on their that are saying the oil demand will not slow growth dramatically. That is hard to believe.
We see technology reap the benefit of people slowing down on transportation, and doing more and more work, buying, and all other activites online. The popularity of the gaming community right now is a precursor to the ability society has to embrace online activity.
Good Fortune from Trade Equity!!!
PreMarket Buzz
9:08 EST
Dow Futures are showing an opening of 11 points down on the Dow.
This morning we will have Crude Oil inventories out. It will be interesting to see of the equities move at this tipping point.
Obama looks like the candidate of choice and you might start seeing some industries(healthcare and defence come to mind) start to possibly show strength or weakness depending on the news.
Germany posted a confident report this morning regarding their economy. The German economy is in rough shape currently.
Gold is showing a $1.90 drop right now. If Gold pulls back to 875 per ounce, we consider it a buy due to inflation showing in government numbers around the world.
With sales of PCs rising around the world as many third world countries com online, Hewlett-Packard reported 16% rise in quarterly profit. Keep an eye on the Computer stocks today. 16% is a number that might get things move in this sector.
Good Fortune from Trade Equity!!!
Dow Futures are showing an opening of 11 points down on the Dow.
This morning we will have Crude Oil inventories out. It will be interesting to see of the equities move at this tipping point.
Obama looks like the candidate of choice and you might start seeing some industries(healthcare and defence come to mind) start to possibly show strength or weakness depending on the news.
Germany posted a confident report this morning regarding their economy. The German economy is in rough shape currently.
Gold is showing a $1.90 drop right now. If Gold pulls back to 875 per ounce, we consider it a buy due to inflation showing in government numbers around the world.
With sales of PCs rising around the world as many third world countries com online, Hewlett-Packard reported 16% rise in quarterly profit. Keep an eye on the Computer stocks today. 16% is a number that might get things move in this sector.
Good Fortune from Trade Equity!!!
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