A few interesting things have happened - Dubai which literally was building towers to the heavens has stumbled (pretty badly). It has roiled (probably most used word when it comes to messed up credit markets) their creditors and caused some pukage in world equity markets. The damage to US markets was mild at best - and the most notable thing was that the lows of the market were the opening ticks - the dip buyers bought the market immediately so that by the end of the day the loss for the Dow was 150 points. I woke up and read article after article about how to take advantage of the silly selloff....now the selloff maybe over done (I have no idea) but the fact that everyone was looking to buy the dip makes it unlikely that this Dubai issue will be shortlived or easily contained. Anyways we'll hear plenty about this all week Im sure - there will proabably be constatn talk about wether or not the UAE will bail them out, which banks are reeling from this (HSBC,RBC) who is next etc??
To me with the S&P up 65% from the lows there is ample room for stocks to correct and this MAY be the catalyst...it MAY not be as well. Selloffs have been one day wonders - but when sovereign debt issues come into play Id say there is potential for more than a one day hiccup to the downside. I suppose its possible that tomorrow we will return to the regular scheduled program of buying AAPL,AMZN,BIDU, GOOG etc...The other important news we will hear tomorrow most likely is how the insanity of black friday went - this notion of getting up at 3AM to go buy something, anything at a store for Xmas is kookoo - I have had to go out at 3AM to buy my kids Motrin or Tylenol and I must say its not fun - but to each his own.
Cya in the AM
JB
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