Some comments about MER/BAC deal, FED Rate cut, and GS ER

MER/BAC deal is very unusual, it seem some tricky thing inside.

I can not believe that BAC can offer $29 to buy MER. And MER try to suvive and not sure it can make it or not. It had bad book even worse than LEH. I think MER worth only $10 at most. I don't believe this deal could go through. Why BAC buy MER at full price? It could get deep discount. let's wait and see.

FED may cut rate tomorrow to boost liquidity. But don't laugh too early. If FED did cut rate, that means the things goes really bad.

GS could have some trouble on ER or outlook. Chart says that. Watch out.

( GS report ER tomorrow before market open.)

Take care.

[wavePlayer]

回复mojoe的评论:看明天了。按常规应该是接近 short term bottom. 明天最好gap down, VIX spike to 35 那就差不多了。
But keep in mind, VIX is not only indicator to watch. VIX if break above 40, that will be totally different story. It could go as high as 60 as 2000-2002. That will be disaster. But I think this time it will contained below 40.

[mojoe]

Can it be considered a capitulation day today? Trading volume on DOW was huge. What worries me is that SPX broke 1200 and DOW broke 11000. Tomorrow may be key to determine market direction. Your thought would be greatly apprecited. Thank you!

[wavePlayer]

回复七月晴天的评论:谢谢七月MM 来访。你的歌声实在是太美妙了。希望多唱。

[drywall]

You are absolutely right about BAC-MER deal, looks like a lose-lose situation, I just can't figure out what is going on behind this deal.

[七月晴天]

你对市场的评论太准了，sharp, 敏锐。真是神了。谢谢你的好文连珠。我可是你的粉丝了。