Feb 23, 2005

A Day Worth Watching

That was the worst day in the equity market since Aug 6th, 2004 but I don't think the fear level was quite the same. Strange times in equities as pariticipants seem pretty relaxed about moves in either direction. Down does feel easier though.

Commodities are a bit more interesting as these recent rallies have really brought out some table pounders. I would be watching the dollar to see if it makes a quick (5-7 trading days) retest of the Dec lows which could set up a pretty powerful bottoming pattern. That would put the kabosh on commodity trades though it is a few days off and far from a done deal.

I have to wonder if by Thursday we will see some Fed officials trying to clarify Greenspan's remarks on interest rates. A bit tough to take back but I would be surprised if they did not try.

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