Tuesday, August 28, 2007

Fed gave a sucker punch to markets..down..down..down..

Markets were very "shaky waiting for minutes from fed meeting"...what dissappointed markets the most was the realization...that Fed was way behind the curve in dealing with sub-prime issue which is eating away....consumers confidence........

Fed did REACT after the minutes were written...by cutting the rate on discount window by 1/2%......previous friday.......

Markets are "pressuring feds to cut fed funds rate by 1/2% to regain the confidence of investors & consumers"...there is a very good chance that it will happen !!!!

Markets are very choppy but it is OVERSOLD now......so expect a REBOUND on wed ......

It is very "prudent to stay in strong stocks...because they will recover faster than 2nd or 3rd tier stocks"

Needham analyst gave a "buy" repeat to SNDK with $65 target today...so SNDK stayed green in this terrible tape.

Decline ratio & decline volume were extremely BEARISH....so was the new low list.....generally a sign before "snapback".....

Please continue doing your due diligence and find your own comfort level with exposure & stock selections.

BLOG does not give buy or sell.

Saleem

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