SWFs will be a big deal in 2008. So far they’ve just stuck their toes in the water. The more comfortable they get the more aggressive they’ll be. No doubt mistakes will be made but with trillions at their disposal they’ll make up for those with just a few weeks cash flow. Can you imagine how many investment bankers are lined-up in various national capitals looking to make deals? You can bet GS is there with nice intro’s from Paulson and Rubin. We’re such dopes!

Anyway, with only two days left to defend and hold par, trading desks and others are busy propping markets higher. With next week also being a short week, expect most traders to stay away until the following week.

Disclaimer: Among other issues the ETF Digest maintains positions in: IEF, GLD, IEF, DBC and IFN.