Up, Down And All Around – Wall Street Does Its Thing

November 27, 2007 at 10:54 am  ·  Category: Market Commentary

Markets were down big yesterday on news that HSBC was taking $45 billion worth of mortgage backed securities from some of its SIVs onto its balance sheet and speculation that other banks, like Citigroup, might have to do the same.

And now markets have rallied from oversold conditions on news that Citi received a $7.5 billion capital infusion (S&P 2 Day Chart).

Up, down and all around – it’s the Wall Street dance as traders try to capitalize on inefficiences and find equillibrium prices.

Posted by Greg Feirman  ·  Trackback URL  ·  Link
 

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