Japan and Europe are down and the greenback continues its surge against the Euro as they contemplate interest rate cuts. Yesterday the Fed announced that they will now backstop about $650 billion in money market funds. Geez.
As we stand now in the pre market we have given back all of Monday’s move. Look for commodities to remain weak with the new strength in the greenback. Oil is trading under $70 again.
We are now in the process of the credit crisis digging its claws into the economy. More trapped longs from Monday although volume was light which in itself wasn’t a good sign. I’ll be posting on twitter. Don’t buy the pundits.