Goldman Sachs Sued by SEC
Markets were shocked into action earlier today as the Securities and Exchange Commission is suing Goldman Sachs over failing to disclose, as well as misrepresenting key facts related to a subprime mortgage derivative, just as the market was teettering on collapse.
Markets around the world are getting hit, with the financial sector being worst hit. Commodities, which are of particular interest to us, were also hit heavily, with West Texas Intermediate Crude trading well below $80 per barrel as of this writing. We believe this shock may have move into next week as Asian and European markets are already closed for the weekend. This may set up a nice long commodities opportunity. Beware of this turning into an even greater scandal, and being the catalyst for a double-dip in the economy (and therefore commodities).
U of M consumer sentiment came out earlier as well, also pointing to a significant dip in how rosy the future appears to the US consumer (a reading of 69.5 vs. 74.7 forecast and 73.6 previous, revised upward from 72.5).
We are monitoring the situation very closely for a possible trade setup.
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