The markets are down at mid day, but something is strange in the air. I just sense that the market are inching to go higher.
I just feel it.
But maybe its just me?
Anyway...Crude is dropping below 70, no doubt not helped by this article:
english.caijing.com.cn/2009-08-28/110230655.html"
This is a very disconcerting piece about OTC derivative contracts that are in serious risk of defaulting. The article goes on to say that investment banks will just eat the losses and make them up with compensating trades, but its never a good idea to have derivatives contracts broken by State Owned Companies, especially from China.
I will say this again, any market correction will come because energy corrects not the banks.
The banks and financials have some decent news flow with regards to mortgage underwriting and trading, so they will be able to pump out some fraudulent lunch money over the next few months.
When the market corrects it will be because of Tech and Energy, the two groups that started this huge rally.
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