Monday, September 10, 2007

Monday Morning Bounce To the Ounce?

Friday's selling on Wall Street and Europe spread into Tokyo, which fell 2%, but Hong Kong rose 17 points. Declines in Europe are modest, running at 0.1%.

Stock futures are up a few points thanks to Bear Stearns news: British billionaire buys 7 percent Bear Stearns stake. Fresh Intel news as well: Intel Updates Third-Quarter Revenue and Gross Margin Expectations, which is sending its shares higher on the lower end of guidance being lifted.

On bubble vision, the mantra remains 'no recession': and an even more audacious claim by a guest that recession is already "priced in"!

But don't let the complacency on t.v. fool you. Major tests are just ahead:

This would be the culmination of all nightmares: Treasury Gain May Falter; Foreign Holders Flee Dollar (Update3)

-Test preview: Debt Market in `Pivotal' Test as $140 Billion Matures adds a dash more of suspense: The real reason to worry about bank conduits

-And then there's Bernanke's test: Fed September Meeting is Bernanke's Test. As we await next week's Fed meeting, Fed-speak, and potential jawboning will be very important. Plosser gave the markets an earful over the weekend, and today we hear from three Fed bank presidents, Lockhart of Atlanta; Yellen of San Francisco and Rick Fisher of Dallas. Fed governor, Fred Mishkin will speak on the economic outlook in New York. Not be outdone, Bernanke will speak on Tuesday in Berlin.

-Gold testing a big double top zone, up to $708/oz, basis October.

A few other items of note...

-Talk about swallowing big time pride: KKR close to concession on First Data deal: report
-We wheeze, they sneeze: Japan's economy shrinks 1.2% in quarter... that's contraction, not slower growth.

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