What a week it was for the markets with triple digit swings in the Dow. It started with BNP Paribas frozing 3 funds worth 2.2 billion. Europeam markets responded to this news with a wide sell-off. Up until a month ago investors were convinced that the subprime mortgage problem was small, now complacency has been replaced with fear, and contagion seems to be the in word. Central banks had to intervene to solve the problem of securitization market. The ECB intervene with 200 billion, the FED with 38 billion and Japan central Bank and Australia with another 15 billion. Is this enough or enough to delay the problem? The fact that the FED decided to accept mortgage -backed bonds as collateral it averted more panic selling by hedge funds. Will 38 billion solve the subprime market? Does anyone know how much this market is worth?

But with all this intervention the markets manage to close higher last week. For the week, the Dow gained +0.4%, the S&P 500 rose +1.4%, the Nasdaq +1.3%, and the Russell 200 4.4%. Despite that the roots of the sell-off are in the USA, both the pound and the euro lost ground to the dollar.

The volatility in the markets offered less chances for profits but Mr.Doleschall remains firm in first and second position