The major indices continued to sell-off after a quick bounce back, based on news of EU TARP-like bailouts. At this juncture, we continue to remain cautious, as we believe the selling is not yet over. Below are the major events which occurred this week.
1. UK – David Cameron won the election and the Conservative replaced the Labour Party.
2. The Chinese market now officially in Bear Market territory (correction of more than 20%); Recent figures point to inflation and manufacturing slowdown;
3. EU/IMF announced a US TARP-like bailout to the tune of $1 trillion dollars; The ECB/IMF will buy EU countries’s government Bonds if needed; It was reported that the French President Sarkozy threatened to pull-out of the EU if the Germans did not support Greece bailout.
4. Portugal & Spain announced their own austerity measures to prevent a Greece-like catastrophy.
5. Gold hits new high at $1,248 an ounce.
6. NY Attorney General to investigate the major investment banks for misleading CDO’s practices.
7. US Government also announced its own investigation into Morgan Stanley over Mortgage Derivative Products; Goldman Sachs is already under  government scrutiny.
8. The Senate Finance Committee to investigate Home healthcare company practices of overbilling Medicare — related companies effected were (AFAM, GTIV, AMED, LHGC…)

Here are the major events for the next week:
1. 5/18 — PPI (Producer Price Index)
2. 5/19 — CPI (Consumer Price Index)
3. — Greece $8Bil Redemption

Attached is an interesting chart from the European Commission about the PIIGS countries’s public debts.