Over at minyanville, one is hinting at a crash soon. I don't see it happening. Rates are falling; pessimism seems too high.
After a very choppy and haphazard session, the major indices were able to finish out Friday’s trading session essentially unchanged. Confusion over what to make of a possible deal for LEH kept the action in the financials bouncing around, while consumer discretionary, industrials and tech seemed to follow suit. Meanwhile, oil was also all over the place, but with Hurricane Ike threatening energy assets in the Gulf and a little weakness in the greenback, the resource sectors led to the upside for the entire day.
What happens over the weekend is anyone’s guess, but our concern is that any possible deal over the weekend may be met with the same sort of “sell the news” reaction we saw after the FNM/FRE news. While market players seem to be generally optimistic, the real test will come once the deal is done.
Regardless, things should be interesting once we get back at it on Monday.