Today, we have Bernanke and president Bush speaking. The markets will certainly be looking for reassuring comments to help stabilize the markets today.
It is human nature to hope for the best. Loose lips do sink ships, but it is clear that the passengers of the ship can see the water rising up the sides of the hull.
Do not take any steak in Bernanke and president Bush’s words unless they state they will ignore the credit crisis and begin to raise interest rates to combat the “subsiding” inflation Bernanke talks about. Message to Ben you need glasses and to cut out your silver tongue.
It seems that the futures are bouncing back from the lows of the overnight session. We need to see the S&P hold 1214-1218 area, otherwise we are looking at 1170-1189 area.
PPI came in higher on the headline, but was relatively stable at its core. Looking further into the numbers it would seem that discretionary items are taking a hit suggesting that the stimulus checks are not really helping at all. Autos lead the way in discretionary items continuing there downtrend which is a key tell for the economy in general.
The dollar broke 72.98 on its index and the next break should be 71.34. Below this is 70.96 which is the crucial line in the sand. Keep your eye on the dollar for it for tells your fate as a long investor in the market.
Also a good guide for finding bottom is to see tangible book value on the banking index. As an example C’s tangible book value is around $10 -$12. Thanks to Meredith Whitney we have this price in [[C]] as a indicator for rock bottom.
GLT
by GW
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