The Day that Was - September 17th 2007

First lets start with happened at the end of the day. Bank of America (BAC) has come out and stated that the credit situation will have a "meaningful impact" on earnings for the quarter. Then E-Trade (ETFC) released a statement that they are guiding much lower for the year and have developed a plan to streamline business operations. They will exit the wholesale mortgage business as part of that business restructuring.

So at the end of the day we got more bad news on how the credit situation is impacting companies. Tomorrow morning we learn what Lehman (LEH) will say. It will be important for Lehman, as well as all of the other banks and financial institutions to report as honestly and accurately as possible. If they can't value certain assets then they need to get it out in the open. The markets are smart, they don't want hidden numbers or obscure statements. Let's get it out in the open, it will help to heal the markets faster if they do that. Ok, off my soap box.

The market traded today in a completely 'confused' state. No conviction for anything. It has been said by many, including us that tomorrow is indeed one of the most important FOMC statements in many years. Please see the post from last night for our analysis of the situation.

Tomorrow we are going to be closely watching the action. But unless your a daytrader (and experienced at that) then there is no reason to be trying to trade the aftermath, it could very well be short lived and you will be on the losing side. again, please re read last nights statement for the reasons why we are going to remain in cash until further notice.

Rest well.. tomorrow will be a wild day.