Wednesday, August 29, 2007

Market Update

We are getting a strong rebound today though I would not be surprised to see this rally fade.

Key levels to watch : Dow 12,885(support) & 13,132 (resistance) , S&P 1427(Support) and 1457(resistance) , Nasdaq 2491(support) and 2525(resistance).

Another victim of the credit crunch. Bodies continue to be discovered on a regular basis. Once this is all over the casualty list will likely be extensive.

The Yen is moving lower which is good news for equities.The Yen has had a tremendous run the last few weeks evoking fears of an unwinding of the carry trade. With the BOJ keeping rates constant I think the carry trade is safe and the Yen will continue drifting lower in the months head.

The subprime crisis was not just limited to blue collar America. Higher end homes are getting hit too. The 'Keeping up with the Joneses' mentality is taking its toll.

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