Wednesday, August 08, 2007

Market Recap

Now that I am done counting all the money I made today I can say that today was a great day to be long tech and financials and everything else for that matter. Apart from a little hiccup in the last hour, the bulls were in total control. Talk of resistance at S&P 1490 was eliminated. 1500-1505 maybe be another layer to watch out for. I added some DUG as a short play on oil and gas and added some SDS for protection. Housing and semis were the leading sectors while utilities lagged. Water,home construction and coal were the leading industry groups while mobile telecom, footwear (thank you HLYS) and media agencies lagged.

Has liquidity returned to the marketplace ? Todays heavy bond appetite seems to think so.

Always thank your lucky stars you don't own stocks that fall like this. Apologies to all that do own it.

Is China going to start dumping US Treasuries ?

China may sell its Treasury holdings if Washington imposes trade sanctions to
force a revaluation of the Chinese yuan, U.K.'s Telegraph reported Wednesday.
Xia Bin, finance chief at the Development Research Centre, said that Beijing's
foreign reserves should be used as a "bargaining chip" in talks with the U.S.

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