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

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Strengthen your portfolio in good times and bad.

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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.
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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