Saturday, September 1, 2007

August 2007 Rewind - Housing & Liquidity Concerns Persist

This August, once again the equity markets struggled with housing and liquidity concerns. At their lowest point, the major indices logged a near 10% correction off of their July highs, only to then reverse strongly mid-month on a Federal Reserve induced rebound. In July, it was easier to pronounce the price declines a "market phenomenon." By the end of August; however, the case for potential economic weakness ahead was difficult to ignore.

The Standard & Poors 500, Dow Jones Industrial Average and Nasdaq 100 may be traded through ETF proxies, including the SPY or IVV, DIA and QQQQ, respectively.

Volatility: High (VIX 20-31)
Direction: Rangebound

[Click to enlarge]

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