More Market Observations 01/30/08

Last Tues & Wend the market should have gotten pounded for 1500- 2000 points, the Fed emergency meeting 75 bps cut stalled it.

Despite todays 50 bps Fed cut and 125 bps in cuts within 8 days, the market tanked in the last hour today on Fitch downgrading #4 guarantor FGIC from AAA.

Afterhours, S&P is now reviewing a load of RMBS and 35% of the CDO in existence for possible downgrade.

Tomorrow, this market could get porked and big time. Watch Asia, Europe and overnight futures for clues

Comments

Unknown said…
10PM PST Japan up China down 1% more or less. Nothing dramatic. Gold/Silver up despite the large commerical short positions. One of these days this levitation act will cease...
Thu Jan 31, 01:11:00 AM EST
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