A week went by so quick. Another new week comes. It's time for us to be back with our expert to see what Pitguru Frank LaMantia has analyzed the financial market for us.


This weekend Ireland officially asked for a bailout said to be over 90 billion dollars. The UK has also offered support of over 7 billion. There are a few reasons why this bailout may not work. The amount might not be enough to take care of the debt. Experts believe that 100 billion or more may be enough, the bailout shows that there might be a more systemic problem and that this bailout is being used to prevent panic. There are a few countries that are facing the same economic woes.

Spain and Portugal seem to be on the same path which could send the Euro into a defensive position. The Euro has had steady gains and the last thing that is needed is panic. Supposedly there are around 20 countries at risk of default. This is something that earnings, positive housing numbers, or better than expected job reports may not be able to deter. Countries defaulting are an issue and hopefully the IMF has a solution. Banks are facing more stringent capital requirements.

The Basel III requirements is making the top banks in the United States raise up to $150 billion in reserves. The Barclays report showed that the top 6 banks have a 90% shortfall in the banking system. Meaning they have a greater chance of running into banking issues than others and need larger capital requirements. Inflation and or deflation - that is the question.

Concerns over the government buy back of treasuries are still being debated. The buyback program was created to combat deflation and try to stimulate growth and infuse some capital. Some believe this could bring rapid inflation into the picture. GDP is set to grow at 2.7% rather than 2.6% but the fact that consumer prices are rising shows that there could still be some serious issues heading into this retail heavy 4th quarter.

The S&P 500 was down about 4 points to 1195 and the DOW was down slightly 30 points to 11151. The holiday week could cause some to sell out of positions as concerns and fears seem to be in the air this morning. A lack of volume and sales need to be closely monitored over the next few trading days.

Related to finance, you can keep up with the currency exchange rate for the best support of your investment!


***chart courtesy Gecko Software’s Track n’ Trade Pro
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