It was just too much bad news. The worry in the oil markets is that the two Israeli soldiers end up in Iran, which would pretty much ensure and Israeli attack on Iranian oil facilities. QQQQ is now at baseline support, and as I mentioned earlier, we should get back above 37 next week, so you will probably get a higher price if you want to get out. Of course, we could have a black Friday scenario tomorrow.
All this makes me think the lows are being put in this month, not in October like everyone was thinking. The markets need Mr. Bernanke to come out and announce an emergency rate cut. I don't think he will, because he is arrogant which makes him incompetent. His little speech a few months ago dismissing the inverted curve and its implications is one example. He thinks he knows better than the bond market where billions are being shuffled around every day. Wrong. Greenspan did it a surprise cut in 1998, maybe he should call Bernanke and remind him of that. It worked, remember that? Saved the markets.
This entry was posted
on Thursday, July 13, 2006 at 1:52 PM.
