US Morning wrap 270409

Hey guys just a quick wrap on the US market tonite,

We expect financials to continue the bearish sentiment felt throughout Asia and Europe on the back of comments by Summers and the potential outbreak of Swine Flu on the economy.

We are bullish on US automakers on speculation that GM may be selling assets to Geely Auto (China). On a personal view however, I see downside for Japanese Automakers in Detriot upsides.

Swine Flu will drive down the travel industry, and push pharmaceutical companies higher today as well.

We expect the US market to follow the trend presented by Asia at the start of today with an estimated 2-3% downside especially as Mexican trade begins to become affected (US's 3rd largest trading partner)

Declines in Oil and Gold have also followed the US markets today, which prompts declines in companies like Exxon.
All this will follow with a shift towards defensives, which establishes our play for the week of a defensive pharmaceutical mix, with some upside on the US Automarket.
We continue to see further downside in financial markets.

Today calls are a sell on GSK ADR outstanding's position
Watch DAI for potential opportunities
Buy on GS due to their increased risk appetite, which I interpret as a positive sign due to more agressive expansion in realizing the opportunity for gains @ 123.5