Wednesday, October 17, 2007

GOIH Capital Markets: Market Overview

Our models indicate both the Dow and Nasdaq to open strong today after the Dow components reported higher earnings today.

However, the recent reports by the Treasury indicate that housing is still a drag on the economy.

Our quantitative models indicate that most of the earning power being reported is based on currency translation, i.e., the weaker dollar. Adjusting for a normalized dollar our models indicate negative growth which will eventually be priced into the market.

We have designed a new quantitative model for currency translations and are designing a new currency derivative to monetize illiquid currency positions in the international market.

The currency derivative will utilize international financial theory, trade deficits, and exchange rates as the stochastic variables to price a forward contract on illiquid positions for monetization.