Tuesday, May 6, 2008

Today's Markets

Fannie Mae reported a huge loss, cut its dividend and said it would raise more capital. Nonetheless, a federal regulator lowered Fannie's capital requirement from 20% to 15%. When you figure out the logic behind that move you can tell it to me. UBS reported a major loss. 70% of Americans thing we're in a recession. Maybe if they just thought happy thoughts everything would be alright. Oil rose again. Wachovia reported a loss twice as high as previously stated. Homebuilder DR Horton reported a major loss as well. All the more reason for the markets to rally.

The SPYs -- which had formed a pennant formation the last two trading days rallied today. But they are still below the levels set on Friday's opening. Prices need to move above 142 right now. They have plenty of momentum to do it.

The QQQQs are still firmly in their upward trend. But they could also be forming a double top with the first top occurring on early Friday and the second top occurring today.

The IWMs continued their jerky method of trading, with very little solid direction.