Monday, August 13, 2007

Pre Market Update

The news is all good this morning. Asia and Europe in particular are very bullish. Japans growth came in lower than forecast eroding and prospects for a rate hike and sending the Yen lower. China's monthly consumer inflation rose to a decade high of 5.6% and several rate hikes are expected this year. The Shanghai composite continues to head higher.

The ECB injected another $65 billion into the market and believes it is 'normalizing'. Liquidity reigns supreme once again.

Retail sales numbers came in solid. If they can't tap into their home equity, consumers are just going to turn to plastic. Credit card companies MA DFS and AXP are all good buys here.

Goldmans Sachs Global Equity Fund is getting a $3 billion bailout.Its good to be in a position where you screw up and get away with it. Thats why you want to own GS.

Blackstone Group is soaring on earning news after more than tripling profits. The stock is still trading below its IPO price though its far above its lows. BX CEO Schwarzman acknowledges the 'more challenging financing conditions' ahead.

US stock index futures are soaring this morning and the markets are expected to open higher. The trend will be established after 10am and if we get a pullback it may be profitable to add to long positions.

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