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Two Ways To Play: Dubai Brings New Meaning to Black Friday


Strengthen your portfolio in good times and bad.

Dubai Brings a Different Meaning to Black Friday

Commodities and stocks are down around the world this morning after state-owned Dubai World defaulted yesterday with $59 billion in debt.

The government investment company is seeking to delay payment on its debt for about six months. Investors continued to look to bonds pushing the two-year note down below 0.65%. The yield on the 10-year fell eight basis points to 3.19%.

Meanwhile, the dollar rallied against most major currencies but plunged against the yen before trading flat after speculation that the Japanese government would act to curb its gains.

Gold fell nearly $60 overnight and crude oil plunged to $72.39 a barrel before both commodities paired much of their losses.

From the Bull Pen: If this feels like your classic shakeout exaggerated by month end, then consider buying into the dip. Using the S&P depository receipts (SPY), one can fade (read: buy) into the weakness to 107. The ability to maintain this level (SPX 1070) could fortify the bull trend; a sell stop can be set below that point.

From the Bear Cave: There certainly is nothing wrong against hedging your portfolio. One looking for downside exposure can look to the Russell 2000 ETF (IWM); a buy stop can be set above $60 to $61.

A Quick Check around the World

Asian trading closed with the Nikkei -3.22%, India -1.32%, Hang Seng -4.84%, Shanghai -2.36%, and Taiwan -3.21%.

Across the pond, we see the FTSE 0.39%, CAC 0.65%, DAX 0.46%

As of 8:30 AM EST, S&P Futures are trading -27.0 to 1082.00. Nasdaq futures are -40.00 to 1754.00.

A Look at Commodities

Over in commodities, crude oil is -3.83 to 74.13 while gold is -24.20 to 1162.80 this morning. Silver is -71.0 to 1805.5 and copper -8.900 to 307.60.

The dollar Index is +0.4300 to 75.3150.

Not much on the radar today. Hope you all had a great Turkey day. See you next week.
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No positions in stocks mentioned.

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