Morning update:
The initial squeeze is calming down as the day gets older. NQ dropped to 1721.25, still shy of a gap close. ES is doing much better, thanks to financials and energy. So far, the 1235 level is holding. NQ will need to hold the 10 dma at 1733.25. Internals are bullish, with NYSE ADVDEC lines at +2200 and Nasdaq at +1500. VXN however has a bid and the VIX is not far from highs. Trins are also at or above 1. This could be a problem.
Full text of Paulson speech: link.
"The underlying weakness in our financial system today is the illiquid mortgage assets that have lost value as the housing correction has proceeded. These illiquid assets are choking off the flow of credit that is so vitally important to our economy. When the financial system works as it should, money and capital flow to and from households and businesses to pay for home loans, school loans and investments that create jobs. As illiquid mortgage assets block the system, the clogging of our financial markets has the potential to have significant effects on our financial system and our economy. "
The initial squeeze is calming down as the day gets older. NQ dropped to 1721.25, still shy of a gap close. ES is doing much better, thanks to financials and energy. So far, the 1235 level is holding. NQ will need to hold the 10 dma at 1733.25. Internals are bullish, with NYSE ADVDEC lines at +2200 and Nasdaq at +1500. VXN however has a bid and the VIX is not far from highs. Trins are also at or above 1. This could be a problem.
Full text of Paulson speech: link.
"The underlying weakness in our financial system today is the illiquid mortgage assets that have lost value as the housing correction has proceeded. These illiquid assets are choking off the flow of credit that is so vitally important to our economy. When the financial system works as it should, money and capital flow to and from households and businesses to pay for home loans, school loans and investments that create jobs. As illiquid mortgage assets block the system, the clogging of our financial markets has the potential to have significant effects on our financial system and our economy. "
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on Friday, September 19, 2008 at 9/19/2008 10:50:00 AM.
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