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Morning Call: Futures Flat, New Home Sales At 10:00, FOMC Minutes Late

August 26, 2008 8:53 AM

pouringcoffee.jpgThe futures are flat 45 mins before the open. We have New Home Sales and Consumer Confidence at 10:00 EST. A bigger market mover may be the FOMC minutes at 2:00. Not sure what they could have said that may move the markets other than financial concerns which clearly exist anyhow. But it may reinforce the idea that a “second wave” of financial crisis is coming. Consumer debt and prime mortgages is the second wave and is clearly coming, IMO.

People continue to be shocked by this. But as I have said for month after month, it is the result of declining real incomes NOT by the initial crisis related to subprime. The crisis was simply masked by massive borrowing via the housing bubble.

At any rate, if we clear 1261 on the SP we HAVE to reverse. If we cannot reverse and go positive we will likely close at or near the low of the day. Opening flat is going to make the call more difficult as either can happen. if we opened up 10 or something and then cleared it, we would obviously be in trouble.

If you want to be long, the trade is long here above 1261. If it clears then you will have to know what you are doing on an intraday basis.

Written by Tom@StockBlade.com · Filed Under Pre-Open 

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