Friday, August 03, 2007

Market Update

Early morning weakness due to a very weak job report.

Credit-Default Swaps Fall for Week as Traders See Risks Abating
Prices to protect corporate bonds against default fell for the first week since June as global financial markets stabilized. Bloomberg

Could this mean the worst is behind ? It appears the worst case scenarios in subprime and real estate are already priced in.

Legendary investor Jim Rogers is short the investment banks and homebuilders. He believes there is a lot more downside ahead. While he could be correct and Jim usually is in the long run, we could have a period of choppiness ahead where I-banks and builders spike up in price before heading back down.

Gold and silver are showing strength today and so is the Euro on the back of Dollar weakness.

Equities showing strength include SNDK LVS TOPT EYE OPWV MHGC SWIM SPAR FCN

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