Daily Commentary by Larry Baer: Be increasingly vigilant with your pipeline risk management strategies. It is a very treacherous market right now, very headline driven.
Signs that the euro-zone debt crisis has begun to engulf Italy will likely drive solid global demand for safe-haven investments today, supporting the prospects for steady mortgage interest rates and ramped up bidding for the $32 billion worth of 3-year notes the Treasury Department will auction at 1:00 p.m. ET. I will post the auction result on my website as soon as possible once the final gavel falls.
My technical models are flashing a growing number of signals indicating the equity markets are running out of upside momentum - a condition suggesting global investors are becoming increasingly concerned the euro-zone crisis is on the verge of morphing into a major financial disaster. If this assessment proves accurate - look for a downward breach of the 11,900 level for the Dow to produce at least a 200+ point plunge that carries into the Thanksgiving Holiday period. Falling stock prices tend to be supportive of steady to perhaps fractionally lower mortgage interest rates.
THE MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
