Interesting Articles

RBS issues global stock and credit crash alert
The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks.A very nasty period is soon to be upon us - be prepared," said Bob Janjuah, the bank's credit strategist.A report by the bank's research team warns that the S&P 500 index of Wall Street equities is likely to fall by more than 300 points to around 1050 by September as "all the chickens come home to roost" from the excesses of the global boom, with contagion spreading across Europe and emerging markets.Full Story

Paulson & Co. Says Writedowns May Reach $1.3 Trillion
John Paulson, founder of hedge fund Paulson & Co., said global writedowns and losses from the credit crisis may reach $1.3 trillion, exceeding the International Monetary Fund's $945 billion estimate. We're only about a third of the way through the writedowns,'' Paulson, 52, told the AIM International hedge fund conference in Monaco today. There are a lot of problems out here and it will continue to be felt through the year. We don't see any signs of stabilizing. Full Story

Two More Builders Buckle
Two more home builders have filed for Chapter 11 bankruptcy protection in the face of declining home sales and troubled credit markets.Full Story

Chuck Prince Finds Selling Home No Easier Than Fixing Subprime
Former Citigroup Inc. Chief Executive Officer Charles O. ``Chuck'' Prince III lost his job because of the housing slump. Now he's having a hard time selling his home. Prince's five-bedroom Tudor-style house in Greenwich, Connecticut, has been on the market for six months. He has cut the price by $300,000 to $5.85 million, according to the property listing. Full Story

Foreclosure business in Boooooooooom !!!

wow we are seeing thanks giving give away and x-mas deals going on in housing market look at this video its BOGOF(Buy One Get One Free) offer.

Are banks on verge of Failure ?

The key bank index- philly broke all time new lows today. Lehman brothers wachovia are the most active investment banking stocks traded with 4x volume with price down. Lehman looks like it caught the Bear stearns disease.

According to one of the firm RBC Capital they are expecting around 150 + banks will fail by year 2010.

Market Updates

The fear factor in the markets has rose more than +10% in a day which definitely shows there is weakness in markets and showing some sign of weak economic indications.Lets look at the jobs no this Friday which will tell us the whole story of the sell off.


Most distress sector so far are housing and financials. Today S&P has downgraded 3 big investment banks Lehman, Morgan Stanley and Merill. I see $23-24 key support levels on financials and $16-17 on housing.If they lose the support around that area we can see fear rising in the markets.





Oil is showing more signs of bullish but it needs to consolidate at this level for any rally as the indicators are showing over bought on weekly time frames, And I'm hoping this will rally to $150 if it consolidates at this levels for few weeks here or pull back and bounce around $120. But at the same time it has to stay bounce strongly @ $120 for pull back rally.


Street tracking the gold is over sold at this levels and may be its time for the metals play.



All the key indices are showing more and more weakness as we clearly see the over head resistance and are over bought in longer term with more than +15% from Jan/Mar lows as we had enough correction for this bear market and we can clearly say after todays action the markets tested 10 day weekly prices which is not a good sign. Look into the markets the past week was window dressing with the month end profit taking with last friday of the month and coming on first monday of the month sell off which is unsual and definitley we see more downside in the markets, this is my idea about the markets and will post back few multi year breakout in energy sector.

where are the key level? I dont know about the support but i would say these are the level of resistance on the indices:
S&P 500 - 1388 - 1400
Dow Jones - 12708.87 - 13000
Technology - 2500- 2550