Rumors are mounting after the market close that some huge hedge funds are in trouble and are trying to unwind positions as they are closing. Another problem is the banks in Europe are saying their housing debt problems are more problematic than they originally thought.
Lets see what happens in the next few sessions. I think we are just at the bringing of the bad news, Bear Sterns was the warning shot in the sky and now the real unraveling will begin soon.
Commodities are cracked and tech looks like it is just starting to roll over. There will be no where to hide soon and if you dont want to play on the short side I am sorry to say you are just foolish.
The bump up in the bank stocks was just that a bump. I think they will be in a world of hurt soon very soon. We haven't seen anything yet.
MARKETJEDI
Thursday, September 4, 2008
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