Some comments about MER/BAC deal, FED Rate cut, and GS ER

MER/BAC deal is very unusual, it seem some tricky thing inside.

I can not believe that BAC can offer $29 to buy MER. And MER try to suvive and not sure it can make it or not. It had bad book even worse than LEH. I think MER worth only $10 at most. I don't believe this deal could go through. Why BAC buy MER at full price? It could get deep discount. let's wait and see.

FED may cut rate tomorrow to boost liquidity. But don't laugh too early. If FED did cut rate, that means the things goes really bad.

GS could have some trouble on ER or outlook. Chart says that. Watch out.

( GS report ER tomorrow before market open.)

Take care.

[wavePlayer]

回複mojoe的評論:看明天了。按常規應該是接近 short term bottom. 明天最好gap down, VIX spike to 35 那就差不多了。
But keep in mind, VIX is not only indicator to watch. VIX if break above 40, that will be totally different story. It could go as high as 60 as 2000-2002. That will be disaster. But I think this time it will contained below 40.

[mojoe]

Can it be considered a capitulation day today? Trading volume on DOW was huge. What worries me is that SPX broke 1200 and DOW broke 11000. Tomorrow may be key to determine market direction. Your thought would be greatly apprecited. Thank you!

[wavePlayer]

回複七月晴天的評論:謝謝七月MM 來訪。你的歌聲實在是太美妙了。希望多唱。

[drywall]

You are absolutely right about BAC-MER deal, looks like a lose-lose situation, I just can't figure out what is going on behind this deal.

[七月晴天]

你對市場的評論太準了，sharp, 敏銳。真是神了。謝謝你的好文連珠。我可是你的粉絲了。