Today's Key Market News - A Wild Ride

When you dream about market volatility, like I did last evening, you know its finally time check yourself into the white building on the hill with the nice people who have all the best drugs. Well, either that, or buy into an index fund, some gold, a hedge fund of funds (or maybe not) and spend the rest of your life on a beach in Boca digging for clams. In my dream last night, the Dow Index was rising and falling 60 points a second, and then just before I awoke in a drenching cold sweat, it did a loop di loop! Like a roller coaster! The stock price chart drew out a circle, an impossible event since prices cannot lap themselves in history. Let's examine this dream shall we? I noted that within my dream, as prices climbed and dropped, my concern was focused on the risk of a severe systematic failure and significant correction. I expected it to happen, and then the illogical event occurred. This clearly is a study in human psychology, but I'm not sure that I am the best specimen. There are surely too many controls that would need to be placed!

Equities have opened cautiously higher, but folks, truth is, by the time I finish this sentence, they could be lower. Today's economic data was limited to weekly jobless claims, which came in at an insignificant level. June factory orders came in lighter than expected. The ECB kept rates steady, thank the almighty Jean-Claude Trichet! Accredited Home Lenders (NASDAQ: LEND) pulled the rug over our heads and indicated it may yet be in trouble. Recall, we were duped into thinking the subprime player had sold its way out of the hole a few months ago. So, what's in store for players like IndyMac (NYSE: IMB), Fremont General (NYSE: FMT), or for that matter, Wachovia (NYSE: WB) and Wells Fargo (NYSE: WFC). Oh, and tell me how the risky lender with the big rates and credit for everyone, Capital One Financial (NYSE: COF) is going to stay solvent! Please do tell.?.

Our hearts go out to the families impacted by the Minneapolis bridge collapse. Our prayers and thoughts are with you today.

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