Just dropped into the Internet Cafe for a quick fix after glancing at the European open on CNBC. Several indexes have broken 2008 support levels, however key indexes like the S&P 500, the DAX, and NIKKEI have not yet given up.
The Vix was on the move yesterday, however the bar is fairly high now on opening new long positions. I still think it will take a massive break of key support levels to get up there.
I agree about the dangers we face here. Things could easily collapse downwards from here, but many stocks are so oversold that even a rumor of not-as-bad-as-expected news could produce a huge short-covering rally. Given that profit reporting season is upon us, there is much potential for either path. IMHO this is a nice time to let Mr. Market play his little games while we patiently wait for the smoke to clear.
I decided to continue holding all my hedges for now.
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Reading a Bloomberg G8 dispatch, I'm happy to see that world leaders are on top of the economic situation ...
``We have strong concerns about the sharp rise in oil
prices,'' the group said in a statement today in Toyako, Japan,
where the leaders are holding their annual summit. ``The world
economy is now facing uncertainty and downside risks persist.''
Leaders from the U.S., Japan, Germany, Italy, Britain,
France, Canada and Russia proposed holding a forum between energy
producers and consumers to focus on energy efficiency after oil
prices reached an unprecedented $145.85 a barrel on July 3.
While the G-8 leaders made no specific reference to the
dollar, President George W. Bush told his counterparts that
maintaining a strong U.S. currency was in the best interests of
the world's biggest economy, according to administration adviser
Dan Price.
Group of Eight leaders pledged to cut
greenhouse gas emissions at least 50 percent by 2050, while
leaving each country to pursue its own path in tackling
pollution blamed for global warming.
The daring proposal to hold a forum on energy efficiency plus President Bush's reported support for a strong dollar policy come as a great relief. And one can only applaud the aggressive 2050 target on cutting CO2 emissions.
Albert Einstein said:
Only two things are infinite, the universe and human stupidity, and I'm not sure about the former.
