SubscribeDaily Futures Commentary April 28, 2009
Tuesday, April 28, 2009
The chance for higher volatility in the markets was turned up a notch overnight as news is coming out regarding the need for Bank of America Corp. and Citigroup to increase capital. According to the Wall Street Journal, U.S. regulators have told these two financial institutions they may need to raise more capital following stress testing of these two banks.
As I mentioned yesterday, this is how financial market conditions are going to be until at least May 4 when the final bank stress test results will be made public. One thing has changed however. I was speculating that market participants would single out a specific bank or banks and decide they were in trouble. This would lead the herd to these stocks and help drive them lower. Instead, if the WSJ article is true, the Federal government has already done the work.
Continue to look for choppy, volatile trading conditions with a bias to the downside in the equity markets. Losses from the Swine Flu outbreak should also continue to pressure the markets as the global community begins to assess the possible losses to their …
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