More Insurer Negative Outlooks

Crisis is still far from over, MBIA needs $2.9bn for potential termination payments. Moody's rating agency downgraded MBIA from Aaa to A2 on late thursday. But MBIA said it has $15bn asset and liability that is available to satisfy these requirements.

Moody also downgraded FGIC Financial Corps and its main subsidiaries from Baa3 to B1 and cut FGIC's senior debt rating from B3 to Caa2 on late Friday. XL Capital and Financial Assurance was also cut their rating by Moody from A3 to B2. Security Capital Assurance was downgraded from B3 to Ca.

Standard & Poor was reviewing GMAC for potential downgrade on the same day.

-The Material above is Summarized from Marketwatch-

Petrochina Has been Going To be Lower

Spiking oil price in Nymex Future Trading would be corrected by tightening derivative credit standard. As we have seen in March and April, commodity has been drop because of margin call as the Fed begins to consider the impact of higher oil price to inflation. A rumor spread that the fed asked banks to do margin calls. I think however oil price cannot be able to rise too fast.

According to geopolitical in north Iraq, Bush Diplomatic that urges Saudi to pump more oils, and The Fed that tends to intervene into free market, I am sure even though oil price always spikes it will be corrected frequently. Lets see my TA below, in short term I bet Petrochina will be down to $120 in the next several trading days.



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