Wednesday Outlook: Sectors and International

<< Return to page 1

With rising commodity prices and a sense that things are different [as in “better”] in BRIC countries, some rallied off support we’ve been outlining. Decoupling? Not a chance.

The Fed injected another $15.25 billion Tuesday in repos with $10 billion the 3 day variety. So with nearly $40 billion last week they’re keeping the banksters well-lubed to meet their needs.

Could an emergency interest rate cut also be in the cards as a Thanksgiving surprise present? It seems unlikely, but then what tools beyond all the cash injections do they have? If that happened, markets could rally sharply on a short-term basis, squeezing shorts and boosting confidence temporarily.

They might just do it, but it might backfire as well.

Barring any crazy developments we won’t be blogging tomorrow. Have a great Thanksgiving.

Disclaimer: Among other issues the ETF Digest maintains long or short positions in: DXD, SDS, UDN, GLD, GDX, USO, DBE, DBC, IEF and RSX.

Comments

[4thWaveBest:]

Glad I ran into this piece. Useful illustration covering the major influences happening right now. Eager to read the after Thanksgiving review. Also, care to include on next piece the significance of Japan's situation "first bear market" being bandied about 11/21/07?

2007 Nov 22 01:24 AM