|CDO exposure at AIG pressures stocks early|
|Written by L.A. Little|
|Monday, 11 February 2008 03:30|
More worries about losses piling up; this time with DJIA component AIG has stocks under pressure to start the day today. The news flow is horrible and the continued negativity makes the lift here hard to fathom.
Although we have and continue to hold long exposure; that exposure continues to be on the edge as we are not about to hold it into the abyss. So far, the loss percentages are acceptable and we continue to dabble in putting and taking off exposure as opportunities present them-self, but we are at a point where the major indexes need to make a stand in the short term time frame. Not going to give them much more room on the downside.
The jitters are everywhere and although money moves from one bad sector to another, there's a need for new money to start accumulating to have something really positive take place. That only happens if we are starting a new phase in the market cycle and that always is a difficult matter to determine. For now, keep your losses under control and let's see if we can still get a turn here. Downside volume is not heavy again this morning which says a turn is possible.