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David Fry writes a subscription newsletter focused on technical analysis of exchange-traded funds, called ETF Digest (www.etfdigest.com). Dave founded the ETF Digest in 2001 and was among the very first to see the need for a publication that provided individual investors with information and... More
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  • MARKETS BACK-OFF ON SPAIN DOWNGRADE 1 comment
    May 28, 2010 7:27 PM | about stocks: SPY, IWM, MDY, QQQ, AAPL, DELL, C, GS, KBE, XLF, XLY, IYR, IEF, TLT, TIP, MUB, UUP, FXE, GLD, DBC, XLE, BP, JJC, EFA, EEM, EWZ, RSX, FXI, EWP


    It looked like bulls had things well in hand as the 2:15 PM Buy Program Express left the station on time; but, methinks Da Boyz left some amateurs minding the HAL 9000s and they messed-up with just 15 minutes left in the day.

    Bull’s weren’t helped when Fitch downgraded Spain from AAA to AA+. The rating agencies are really on top of things aren’t they? Fitch stated: “Despite government debt and associated interest costs remaining with the AAA range and blah, blah, blah… the economic adjustment process will be more difficult and prolonged than for other economies with AAA rated sovereign governments, which is why the agency has downgraded Sapin’s rating to AA+.” Fitch also downgraded CDOs guaranteed by Spain similarly.

    Dow Jones released this news item at around the same time markets took their first tumble on the day:

    The U.S. Federal Reserve is also active in currency markets, German Economics Minister Rainer Bruederle said Friday.
    His comments come on the heels of remarks made by his Swiss counterpart who said that the Swiss National Bank purchased euros to buttress the single currency.
    "It is a regular procedure of central banks," to intervene in currency markets, Bruederle said. "It is not a secret," that central banks have a foreign exchange rate target, he added.
    Bruederle said "eruptive" movements have to be avoided. He previously said that China holds 25 percent of its foreign exchange reserves in euros.

    Why is this important? It just confirms how active central banks around the world are at manipulating markets. I’m sure Minister Bruederle has gotten.....READ MORE! 

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  • Advill
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    Comments (2289) | Send Message
     
    What is funny, from my point of view is that Fitch and the others "rating" agencies degrades Spain situation AFTER they took the measures to correct the trend and plans for reduce deficit ( the major problem at the moment) are in place, is like Lehman case when they reduce 6 levels in one night AFTER the crack was public.

     

    What is the reason to pay someone rating what is already obvious?
    29 May 2010, 11:43 PM Reply Like
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