6.13.08

   6.13.08

        It was another volatile week of trading. The big news was concerns about Lehman Brothers financial position. They pre-announced that it expected to report a second quarter loss of $2.8 billion and planned to raise $6 billion in new and dilutive capital. That was on Monday, and it caused a sharp drop in the stock. By the end of trading on Friday, the stock had lost 20% for the week and 40% for the last four weeks. That set the tone for the week and the financial stocks took it on the chin for the first half of the week. There was some recovery at the end of the week, but it was still a bad week for the market. There was the usual volatility in the price of Oil and the Fed speak for the week shows that they are thru cutting rates and will soon will start raising them.

      Oil may help start off the coming week to the up side. Saudi Arabia's oil minister on Sunday will address reports that the world's largest oil-producing country is set to raise production by about 500,000 barrels per day, his adviser said. If so, that should bring down the price of oil, thus raising the value of the dollar, and in turn give a push to the upside for stocks. Let’s se how it plays out! We were looking for this, among other things, to happen but it took longer than we expected. Now we need the powers that be to do something to stop the speculators from turning the futures market into a gambling casino.   

   We will remain in Cash 100% for right now and watch from the sidelines.

Till next time

The MTA Staff