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So finally Mr Greenspan is allowed to speak truth, late then never. The most awaited financial book of year, if I may say so, is out. I have not reviewed it yet as I am ordering it now, so I can’t say how much valuable it is. However, this is one book you may want to invest to gain some words of wisdom from, arguably, one of most influential man of our time.
Mr Market is eagerly waiting for the FOMC announcement. Volatility is on the rise and it will rise till mid-noon and after announcement, it will plummet. Markets have already factored in a rate cut (regardless of extent). You may want to consider, “no cut” for extreme case. Though probability of “no cut” is extremely low, I suggest keep an eye for rare event so you could alter your trading strategy quickly.
Financial stocks will gain initial momentum due to Lehman (LEH) posting good set of results. $60 is good resistance area, once gapped-up beyond that, it may become a support point for LEH. Rate cuts may offer some breathing space for “troubled” stocks (Sub-prime), but how much and how long, I don’t know, but surely good enough for those who are waiting to sell to get out.
Oil is up to new highs, Gold is reaching to shining star, Silver is up, Wheat is going higher Soyabean is inching higher. Most Asian economies have revised GDP growth upwards, India and China are not slowing and hey you are talking rate cuts? That’s how weird I think, at times.
One of my picks for October income portfolio CAM is under pressure due to a downgrade, as Wachovia thinks “We are cautious regarding greater association between oil prices and subsea than oilfield service peers, which could make these names more sensitive to a pullback from what we see as peaky oil”. I don’t know what does this mean, if you know, do let me know. I am not going out of it.
A very interesting day ahead, trade carefully, trade profitably,