Tuesday Outlook: Commodities, Emerging Markets

<< Return to page 1 - Washed Out, or Oversold?

American Express (AXP) announced better than expected earnings after the bell and no doubt this news was leaked to traders early. This may have accounted for the late day rally. Some of their good news earnings came from incorporating gains from MasterCard (MA) and Visa (V) settlements. As of now I’m not clear on the breakdown and effect.

Finally, this article [subscription required] from this past weekend edition of the WSJ about noted economist Anna Schwartz is a must read. And, according to a news story in the Guardian, Wall Street banks will use 10% of government bailout package (I think I’m gonna hurl) for bonuses.

The bright sides of things are that oversold conditions are easing. Does that mean you should start buying? Not for us. My greatest fear remains trading ranges which eat traders alive and spit them out.


Disclosure: The ETF Digest has no positions in any of the above referenced securities.

Comments

[bold4gold:]

Many commodities looking oversold including GLD which is on long term support. Looks like a buy to me!

2008 Oct 21 08:39 AM

[Kelly Liebe...:]

Those that are in the loop aren't mesmerized by the false prop-up of the dollar. Gold is still being jacked with as a way to lull complacency and a false sense of security into the Average Joe's mindset. "Panic must not set in", is their mantra...otherwise the entire house of cards falls.
Now is the time to think against the herd mentality and think about your family and self preservation. How much longer will people remain brainwashed by Paulson, Bernanke and Bush telling us that everything will be fine? The time to act is now. I guarantee you that the good old boy network that is in the loop is quietly buying precious metals and preparing for mayhem. You best do the same.

2008 Oct 21 11:27 AM