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The Vikram-Geithner rally is probably over-bought and we are in need of a correction (maybe what we saw last Friday) in the US but to me that is no evidence of a bottom or that the worse is over. I still believe that we will test recent lows again in the coming weeks.
Let's get back to Friday first where US markets fell 2-3% with both the Dow and the Nasdaq lower by 148 and 42 respectively to 7776 and 1545. Besides being over-bought, other factors that contributed to the weakness were comments from JP Morgan CEO that March Jamie Dimon that March was tougher than prior months - no mention about profitability and to me comes back to the comments of Vikram - which to me dont reflect anything - a one two month trend without any mention of provisions or impairment for a bank says nothing. Adding to the wet blanket was Geithner who now says that some US banks still need help. This Friday's US jobs data will probably show unemployment edging higher to 8.5% on the way in my opinion to more than 10% before the end of 2009. Read more......there just arn't any fundamentals to support it yet !!!!
[caption id="attachment_1447" align="alignright" width="150" caption="Photo by rednuht"][/caption]
The Vikram-Geithner rally is probably over-bought and we are in need of a correction (maybe what we saw last Friday) in the US but to me that is no evidence of a bottom or that the worse is over. I still believe that we will test recent lows again in the coming weeks.
Let's get back to Friday first where US markets fell 2-3% with both the Dow and the Nasdaq lower by 148 and 42 respectively to 7776 and 1545. Besides being over-bought, other factors that contributed to the weakness were comments from JP Morgan CEO that March Jamie Dimon that March was tougher than prior months - no mention about profitability and to me comes back to the comments of Vikram - which to me dont reflect anything - a one two month trend without any mention of provisions or impairment for a bank says nothing. Adding to the wet blanket was Geithner who now says that some US banks still need help. This Friday's US jobs data will probably show unemployment edging higher to 8.5% on the way in my opinion to more than 10% before the end of 2009. Read more...
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The Vikram-Geithner rally is probably over-bought and we are in need of a correction (maybe what we saw last Friday) in the US but to me that is no evidence of a bottom or that the worse is over. I still believe that we will test recent lows again in the coming weeks.
Let's get back to Friday first where US markets fell 2-3% with both the Dow and the Nasdaq lower by 148 and 42 respectively to 7776 and 1545. Besides being over-bought, other factors that contributed to the weakness were comments from JP Morgan CEO that March Jamie Dimon that March was tougher than prior months - no mention about profitability and to me comes back to the comments of Vikram - which to me dont reflect anything - a one two month trend without any mention of provisions or impairment for a bank says nothing. Adding to the wet blanket was Geithner who now says that some US banks still need help. This Friday's US jobs data will probably show unemployment edging higher to 8.5% on the way in my opinion to more than 10% before the end of 2009. Read more...
