Monday, October 27, 2008

Markets Look Weak Until They Turn Around...

Global markets sold off again overnight (some of the Asian markets are getting hit by 10-12% every day -- it makes our little 3% dips look cute by comparison).

If I hear anything interesting today I'll post observations during the day.

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Update! Wow, that was a strange end to the day. The markets were buoyed by some silly stats on new home sales (they revised down the August numbers and suddenly the September numbers looked better). It speaks to the trader mentality of the market - people can't be bothered by looking at the details and they rush to react to every headline.

The markets tanked 200 points in the last 10 minutes and that was a little unsettling. There were rumors of a hedge fund getting a margin call from Merrill Lynch, but I haven't heard anything beyond rumors.

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