Wednesday Outlook: Bears in Control

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Includes: IEF, IVE, IWM, IYR, IYT, KBE, MDY, QQQ, SPY, TLT, UDN, UUP, XLF, XLP, XLY
by: David Fry

“Another crisis, another June,
Another REPO, this afternoon,
Another reason, it is the season,
Da Boyz make whoopee.”

The Fed tossed in another $31 billion to the banksters yesterday and they know just where to route it--right to the trading desks. So, when you start slicing and dicing the next earnings reports from Da Boyz, make sure you check out their trading desk profits as compared to any other source of revenue or profits if any.

Speaking of manipulation, as stated here last week, the Fed would jawbone the dollar higher if they could. If that failed, they’d threaten to intervene. Right on cue, Treasury Secretary Paulson hinted [that’s all it takes] at intervention by saying he wouldn’t take that action off the table. So, I’d say Uncle Buck has found the “Paulson/Bernanke Put”.

Markets were still negative sporting higher volume and poor breadth. This should cause conditions to become more oversold as these negatives accumulate.



















































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