Monday Morning Musings
Not a ton of news this morning making the headlines.
The markets opened under some selling pressure again, after the FBI said it is investigating Countrywide (CFC) and 15 other subprime lenders.
Also, Fitch lowered its long-term ratings for Wamu(WM). And Citi again cuts its earnings estimates for several of the big brokers. All of this has the financials trading lower, while the semis are surprisingly higher.
Oil is up well over $106, which is starting to help the energy complex. The 10-year yield is down a touch to 3.51%.
Asian markets were lower across the board overnight on further worries about the U.S. recession. The Yen is also making more new highs.
The put/call ratio is very high again this morning, opening at 1.24. Bearish sentiment has really been building in the last few weeks, and when combined with an oversold market, should make for a strong rally at some point.
I will have more on the sentiment indicators coming up in a bit--