Bonds have turned negative and we get an equity bid. This could be a key reversal day if the Q's close above 42.24.
Bulls want to see many disbelievers (and judging from every site I visit, there are plenty). We will respect the very strong move off the 10/05 lows of 1168/1170 and enjoy the ride. Shorting this is not wise. Hogs get slaughtered.
SPX 25% correction off highs into today. Will it be enough in an election year?
Sept. 16 (Bloomberg) -- The biggest jump in the London interbank lending rate in at least seven years could wreak further havoc on the U.S. housing market and there's nothing the Federal Reserve can do about it.
About 6 million U.S. mortgages, including almost all subprime home loans and 41 percent of prime ARMs, are linked to the London Interbank Offered Rate, or Libor, according to First American CoreLogic in Santa Ana, California. Today's daily rate more than doubled as lenders demanded higher compensation for risk after Lehman Brothers Holdings Inc. collapsed and American International Group Inc. struggled to stave off bankruptcy.
We might rally, but this piece of news is a long term juggernaut on the consumer.
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on Tuesday, September 16, 2008 at 9/16/2008 02:39:00 PM.
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