We all thought going into last week was difficult to forecast, this week tensions and uncertainty will be even higher throughout Wall Street. Instead of giving my opinion on it all I'm rummaging through the internets to find some points of view and factoids that pertain to the state of our economy.
- China responded to chatter that they might liquidate their holdings of U.S. Treasuries by saying, "China is a responsible investor in the international capital markets." And if that didn't clear the air, they also said "U.S. dollar assets, including American government bonds, are an important component of China's foreign exchange reserves as the dollar enjoys a major position in the international monetary system based on the large capacity and high liquidity of U.S. financial markets." Don't you just love political spin? ahhh The art of not answering a question.
-More hedge funds are coming forward with a statement of their losses. Goldman Sachs' $8 billion global hedge fund is down 26% year to date, or 40% since July '06. If only they would have just invested in a S&P ETF. Meanwhile, Citigroup (C) is reporting losses of $700 million in credit business.
- Of course we've all heard of the Bernanke cash injection this past week. In order to "calm financial markets" (like calming a hyperactive kid by giving them a bowl of candy). Well, the markets are still nervous (if not more so).
- The NYTimes points out that the Fed. Reserve Cash injection is the largest since Sept. 2001 after the terror attacks. It also cites the situation as Bernanke's "first major financial crisis." The operative words there being "major" and "crisis."
- The Fly on Wallstreet's guest blogger "Woodshedder" has a great posting from Friday regarding playing the losing game of trading, with a fantastic link to an article from the Phantom of the Pits (highly recommended you download and read the linked to article).
- Over at UglyChart there's an interesting post and referral links about Quant. trading and the hedge funds that incorporate them.
- Wall St. Warrior and TickerSense do some chart analysis gearing up for Monday's open, putting a spotlight on the 200-day EMA (for the S&P500) that we're all hoping holds as support.
- With all the tumult in the markets Gold prices (though in the upper range of their price trend) aren't acting inversely to the market movements as expected.
- A stroll down memory lane on Howard Lindzon with a news clip from October '87, and indeed THAT was a "bad day." Also, on the DinosaurTraders blog a clip of a more recent "bad day" and the commentary that the talking head sheeple did to rationalize things.