Tuesday, July 15, 2008

Bernake, Bush and Boom goes your 401k...

All of Washington seems to be buzzing trying to figure out what they can do to counter the current crisis of confidence in the markets right now. Bernake is speaking in front of Congress right now. Unfortunately, Big Ben has shown no ability to calm the markets in his short tenure at the Fed.

President Bush will speak at 10:20 but that is not expected to materially move the markets.

Frankly, I'm surprised by the latest moves in the market. Clearly there is increased tightening in the credit markets that is seizing up the financial markets. This can change in a minute if a big fund decides to get long (the sheep are chomping at the bit to buy this market), but we have broken through a number of technical supports that might cause further drops - I'm not a believer in technical analysis, but a ton of money is managed via charts and if you chose to ignore it, you do so at your own risk.

Fun times....

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