Premarket Take 8/31/09

Everyone will be watching this morning to see if the bulls come out and buy the dip as we are -.66% on the S&P 500 futures.  The energy complex has also come unglued this morning with $CL_F and $RB_F are down greater than 3% and NG_F below 3 bucks a contract.

There seem to be two culprits here, the first being China which was down greater than 6% overnight and the dollar which has gained strength.  The weakest of the crosses is $USDCAD which sees the dollar stronger by more than 1.5%.

Two major acquisitions overnight with $BHI buying $BJS in the oil space and $DIS buying $MVL in entertainment.  These are big deals, both larger than 4 billion.  We didn’t see much consolidation at the bottom from December to March, are companies chasing higher valuations now as they fear the ability to make acquisitions at low prices is slipping away?  Who is stupider, retail investors which always pile in at the top, or desperate CEOs who know the real prospects for their companies going forward as we see little to no top line growth?

I neglected to mention on Friday that $NOK was taken away from us Thursday afternoon as it ran through the stop.  I’m dissapointed here, but that’s the way the strategy works, and I’ll stick to my guns.

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