Stocks Slide on Continued Banking Fears, Volume Lower
June 18, 2008
Goldman Sachs banking note stating the US banks would need to raise an additional $65billion to offset losses. However, the note comes at a time where the industry as a whole stated $120billion would be needed. The additional funding Goldman had stated would push the total near the $120. The selling had a hard time picking up steam, but price action was negative all day long. We continue our low volume environment where price action has a bias to the downside.
Day #4 of our attempted rally ended without much fanfare. Days 4-7 in an attempted rally where we need to see a follow-through day. Occasionally, you will have a follow-through day occur after day #7 but these tend to be proned to fail and lead to mediocre uptrends. We aren’t in the environment where we’ll see Monster Stock gains but I do believe we can grab notable gains. Oil and Gas continue to be the place to be as oil and natural gas hover around their highs.
I continue to look for weakness in corn but strength in sugar and cotton as the inflation story picks up more steam. Morgan Stanley earnings will be on the forefront of the News headlines this morning. It should dominate news flow throughout the day.
Keep those losses small.
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Reuters Business- Alcoa to slash jobs and sell 4 unitsNEW YORK (Reuters) - Alcoa Inc said on Tuesday it would slash more than 15,000 jobs, halve capital spending and sell four businesses as it reduces aluminum production in the face of the global economic downturn.
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- Alcoa to slash jobs and sell 4 units
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