The EU has said that European banks need a rigorous stress test of their own and the results will be reported in September. The market is a bit higher and the dollar is lower (watch commodities and materials)
Nice rally so far but such frothy behavior in the midst of massive dilution, credit downgrades and lower revenue doesn’t make much sense, but I’m silly like that. I do believe that Chrysler was nothing but a dress rehearsal for GM’s demise and psychologically that won’t be great for the market. I think it’s absolutely inevitable so stay tuned.
Citigroup has stated this morning that they have used a huge portion of their TARP handout for new loans, that’s good news.
Alpha Natural Resources has made a bid for Foundation Coal for $1.4 bill so keep your eye on the dirty diamonds today as well. Bank of America is selling a chunk of China Construction and will see proceeds over $7 billion. Advanta shuts down credit card lending amid surges of uncollectable debt.
We’re overbought so stay nimble as always. I’m still crazy cautious.