Falling Out Of Their Wedgies!
On August 12th, I posted of the dangers of the rising wedges I saw in the Dow Industrials and the Transportation Averages. Here we are a week later and the averages are falling out of their wedgies.(See Chart here and here)
Not only are Fannie Mae (FNM) and Freddie Mac (FRE) at new all time lows, but Professor Kenneth Rogoff, a respected former chief economist of the International Monetary Fund, says
“The US is not out of the woods. I think the financial crisis is at the halfway point, perhaps. I would even go further to say the worst is to come,” Prof Rogoff said at a conference in Singapore.
In an ominous warning, he added: “We’re not just going to see mid-sized banks go under in the next few months, we’re going to see a whopper, we’re going to see a big one — one of the big investment banks or big banks,” he said.
I keep an eye on the trading of “troubled companies” MER, LEH, WM and WB,, but it could be someone else.
I noticed, too, this story Where will the money from oil go next? by Grace Chen at InvestorTrip. Many to judge by the article are writing the Obit for oil. Itook a look at the weekly and Monthly charts of Light Crude and I’m going to go out on a limb and suggest that oil is only in a correction, with a gap that could be filled at $105 and strong support at $100. I don’t think we’ve seen the highs yet!
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