Wednesday, March 21, 2007


Markets across Asia and Europe are very bullish.

Shares in Morgan Stanley are surging after the company reports profits exceeding all estimates. Trading gains played a big factor. Could they have been short February 27 ?

FedEx reports first drop in earnings in three years. Winter storms and slowing US economy to blame. Shares are tumbling pre-market.

Could this be a contrarian indicator for a big rally ? Merrill Lynch survey shows investor bearishness at 7 month high.

Based on the price movements in the US and overseas markets, it appears the bulls are making a comeback. Today will be an important one for the markets with the FED decision being announced at 2:15 ET. Rates are expected to stay the same. I believe the reaction of the markets after 2:15 ET will be crucial.

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