Articles on the Dubai "crisis"

Sampling of articles picked up in the Twittersphere:

• Distress Over Dubai is Overblown by James Altucher (@jaltucher)
• Will the debt crisis in Dubai mean another downturn? (@vaidynath)
• Pimco's El-Erian: Dubai triggers "overdue correction" in stocks (@edwardnh)
• What to Read on the Financial Crisis by Timothy Taylor (@HamzeiAnalytics)

Intriguing Market Action

DOW: 10309 -154

S&P 500: 1091 -19

NAZ: 2138 -37

The overall markets reacted yesterday to news of Dubai's financial crisis. Read a Dubai Q&A

Perhaps RSW & FAZ will start to cooperate with us but we're adding to neither yet. We're continuing to hold BWX, TIP, DIS, SHY, BIL, SHV, TBT, RSW, XLP, & FAZ.

• Fari Hamzei (@hamzeianalytics) posted a Bloomberg article written Wednesday, November 25th describing a shakeup in Dubai.
• Read more on the current state of affairs on @abnormalreturns Friday links.

Fib. from October 2007 high of 1576 and March 2009 low of 666 on the S&P gives me a 50% level of 1021. The index peaked recently at 1113. The 38.2% level is 1014 but a lot of damage would be done long before 1014 is even tempted. Pivotal levels of 1080, 1073, 1041, and the recent lows of 1029, and 1019 would be fuel adding to negative sentiment. Despite the action would a dip to 1014 be considered a buying opportunity?

I've got to believe that once 1029 and more importantly 1019 is taken out that we're in bad shape but, hell, we're only talking about giving up the last 3 months of gains, that's all. So do you buy these levels?

CPI Fairly Tame

Released this morning the CPI-U, on a seasonally adjusted basis, rose 0.3 percent in October and now stands at -0.2 percent over the last 12 months on a not seasonally adjusted basis.

Next release date is December 16.

Watching Financials...Again

We're watching for the slightest chink in the armor of some of the largest financial institutions before loading more FAZ. Quite a few are on the ropes right now.

• HSBC 62.82
• JP Morgan 42.75 (Watching 41.52)
• Bank of America 15.66 (Hittin' its head on 50 dma)
• Wells Fargo 28.16 (Watching 28)
• Citi 4.18 (Having trouble with 4.25)
• Goldman 176.51 (170ish?)
• Visa 79.51 (Trouble @ 78)
• Morgan Stanley 33.38 (32 along w/ 50 dma)
• U.S. Bancorp 23.53 (23 and 50 dma)