For the Week of June 23-27, 2008

In a continuation of last week's misery, markets fell sharply and cascaded to their yearly lows, multiyear lows in some cases.  What's to blame?  Clearly it's about oil, but the financials are not blameless.  One of the big stories of the week was GM, which hit a 53 year low this week.  In striking fashion, not much fear is in the markets...vix is ONLY at 23, and with the markets at lows, we could see this number rise precipitously.  Bonds shot higher this week after a limp Fed recognized they are in a box.

We'll reiterate what we mentioned last week:  It's a dangerous environment, one that reminds us of the Jan-Mar timeframe.  Caution is warranted as the charts have still sustained significant damage.  Next week brings us a new month, hopefully some better action.

Have a great week!