Professor Elam

Thursday Feb 4 2010

Worries over Portugal Spain and Greece helped take US markets down today. 

Well that is what we technicians call the fundamentals verifying the technical state of the market. Markets have been falling since their peak in early January, today continues the trend now well underway. 

But as I told the students at the start of this semester, this is a very interesting time to be studying liabilities on various balance sheets. That is precisely the problem in the PIGS. See our post three days ago about the PIGS. Remember, in a bear market all news is ultimately bearish!  Hence Honda and Toyota are having a bad time, the Med countries are pressed. And we regularly on which state here in the US may win the race to bankruptcy court first. 

Okay please Prof, you get all excited about this stuff, how much did it matter, glad you asked.

This is the ETF that stands for Exchange Traded Fund for Spain. This ETF trades on the New York Stock Exchange and replicates the Spanish Stock Exchange. Click on the chart to enlarge the picture. This was not a good day for Spain.