Oil was up to $136.74/today +$1.38
Gold was down to $887.20/today -$16.50
Dow was down .33 to 11842.36 today
The Market is waiting for Bernanke to unveil his Fed Funds rate plan for the future.
I expect tomorrow to be semi quiet also.
BTW...the next time you think Saudi...think of wrong kind of oil, and not enough of it. Sour not Sweet Crude is what is produced in the Middle East. So, once again, it looks like in another dire circumstance, we are running short on bullets when it comes to market intervention and possible relief from the thumb of pricing pressures we have allowed ourselves to become subject to.
Merrill is trying to raise capital by selling assets. One of their assets for sale might be BlackRock. Right now they own part of BlackRock and have a Asset Management agreement with BlackRock. So if the sales does happen, the fallout should be interesting. This could also effect the overall rating of Merrill and its ability to raise future capital. BlackRock is supposed to be worth $12Billion.
Watch the catalyst------------
1. Oil- driving inflation and specifically higher commodity prices
2. September/October Foreclosures peak- taking the cash out of the pockets of homeowners on a nationwide basis.
3. Interest Rates- rising over the next year to fight inflation and prolong the agony in the housing market.
4. Jobs/Unemployment- heading for a bad relationship between the two, as we head into a possible new President with a less than stellar vision of how to spur new growth in a time of economic crisis.
I think we have a clear picture of what direction the Market is going and why. Not to say that we won't have times when light creeps through the window and sparks a bull rally.
Good Fortune from Trade-Equity.com!!!
Monday, June 23, 2008
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