Home > Uncategorized > Weekly Overview 2009/11/30: “Dubai Debacle is More So Concern than Conflagration… So Far”

Weekly Overview 2009/11/30: “Dubai Debacle is More So Concern than Conflagration… So Far”

▪ Steady is the word, as the sums directly at stake in Dubai are a drop in the proverbial toxic US MBS and commercial property bucket. Yet, the real issue is whether this is a beginning of more revelations, or the proverbial buck (or UAE dirham) stops right there.  Post-9/11 recovery was unexpectedly derailed by accountancy scandal. 

With the macro situation in flux, technical trend evolution counts.  The counterpoint between equities and govvies is intensifying once again even though central bank liquidity support continues to encourage aggressive fixed income bids.  December T-note above 119-16/120-00 area wasted no time pushing up to 121-16/122-00 next resistance, yet is now settling back (along with other long ends) as the dust settles. It is also interesting the US Dollar Index has slipped back down into the .7500 area (still with a .7450-30 Tolerance) after recovering temporarily on the equities slide Friday.  While it also slid Friday, December Gold future did not finish much back below major 1,180-1,200 resistance even as Crude Oil remained weak below 80.00 and 77.00. It’s all about the equities ability to hold last week’s lows.

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