Thursday, September 13, 2007

A Review of Challenges Facing the Markets

* No Relief for Housing - The market is anticipating a Fed rate cut, but housing stocks are not anticipating relief. The housing index, shown above in a weekly chart, is barely hovering above bear market lows, down nearly 50% from its bull peak.

* Also Hovering Near Its Lows - Is Citigroup stock (C). We've seen a little bounce in banking stocks this week, but C has barely participated. The stock is only about 1% off multi-year lows. Credit exposure remains a concern.

* Bailing Out the Homeowner - Bill Gross of PIMCO offers his prescription for the housing mess.

* Dollar Fakeout? - Trader's Narrative finds an analogy to the 1992 market and its reversal.

* Coming Clean - Jon Markman makes the case for banks to tell us what they know about the magnitude of credit problems.

* At the Abyss - Mish finds problems across the country in commercial real estate.

* Do Oil Price Hikes Affect Stocks? - CXO Advisory blog examines the surprising evidence on this and other relationships between the economy and the stock market.