Can you all feel the tension ?

I think it's just FRE and FNM. It's hard to see the stockmarket rising if these stocks continue to fall

 

07:48 FNM and FRE plunge in pre-market trading, oil sets new high, equity futures sink

FNM (-27%) and FRE (-32%) are plunging in pre-mkt trading, leading to weakness in equity futures (Dow futures -97 pts, SPX futures -14). There are reports out this morning suggesting the govt is considering a plan to have the govt take over one or both of Fannie Mae (FNM) and Freddie Mac (FRE) and place them in a conservatorship if their problems worsen. Under a conservatorship, the shares of Fannie and Freddie would be worth little or nothing, and any losses on mortgages they own or guarantee would be paid by taxpayers... Oil also hit a new all time high of 145.98 this morning, which isn't helping equity futures either... This negative news is taking center stage despite a positive earnings report out of GE.

 

The dow is getting ready for a 1000+ point drop, news all around from high energy prices to bailouts left and right is going to lead to a one day 10-20% correction.

 

Is LEH next???


FNM and FRE are about to be bailed out, if they need a bailout I COULD JUST IMAGINE how many more banks there are left to fail, I would say 2-3 dozen.

 

WM, WB and LEH all down about 9 to 10% this morning

 

Just when I thought it was too late to short these dogs, because the fat tail money had been banked.

 

Stocks tumble after sales of existing homes fall

Thursday July 24, 3:28 pm ET
By Tim Paradis, AP Business Writer

Wall Street retreats following steeper-than-expected drop in home sales; financials decline

NEW YORK (AP) -- Stocks skidded lower Thursday after a steeper-than-expected decline in existing home sales wiped away some of the market's optimism about upbeat earnings reports. The major indexes fell more than 1 percent, including the Dow Jones industrial average, which lost more than 250 points.

http://biz.yahoo.com/ap/080724/wall_street.html

 

For many of my hedgefund colleagues, the last two weeks (today not withstanding) have been rangebound and sideways for the most part.

The break to the downside is possibly the beginnings of a near-term capitulation of fear.

We could see a relief rally as the MM's try to sucker in as many individual investors as they can before dragging things into the abyss...

Stay cautious, and best of luck trading,

-HedgefundJim

 

Feels like a financial institution is about to blow up...

 

Yeah, the fed. lol