DOW, Banking and HSBC

dow
dow jones hit new low just last nite around 6600 which is now closer to my predicted short term low of 6000 earlier [read earlier blogs]

dow had recently fallen two 250+ points sessions, a third one would mean almost 12% decline in a matter of a few days which is surely too much, expect a rebound very soon.

banking
plain vanilla banking in hk and overseas will be very different after this once in a life time credit crunch is over. there are just too many such banks and assets valuation would be much lower then, therefore dont expect a huge rebound in profits of this sector as aging factor will also kick in after 3-5 years in the slumps.

hsbc
given the above, there is no need to subscribe to the rights issue although the i-banks involved undoubtedly will try to maintain some order in hsbc trading prior to book close of the rights.