E. Will the Rally Continue What will Tomorrow Bring ? Don't throw away caution. Volatility remains - the sub-prime mess remains, we have no way of knowing how exposed the banks are to the credit meltdown. Look at the stocks that benefit from the global economy - as we discussed above. They are generating cash and have little to do with the subprime slime - unless an actual U.S. recession appears. In the event of further deterioration in the U.S. financial sector a Fed mandated rate cut will rescue the sector and the stock market. In the meantime - don't be a hero. Don't try and guess which bank or homebuilder or mortgage insurer will pick up the pieces of the fallen. Watch the after hours earnings announcements - positive announcements point to a positive start to the day. Don't be complacent - as we saw - a mere rumour that Goldman Sach would make a negative announcement cost the market 100 points until the rumour was announced as false.
from the stock blog www.amprogram.com
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment