THE STRETCH

Checking on some math for next week, markets seem a bit over sold after this week's crushing. The SPX about 6.5% below the 50 SMA while the XLF is off about 9% on the week.

And if you think its a bad time to try a long side trade in the financial sector check this out from Cramer from around 2:30 this afternoon:

"Remember, if you are at a big bank you aren't allowed to kitchen-sink anymore. You can't "restructure" and take a $20 billion hit, because that's why we have Sarbanes-Oxley. The government got tired of companies taking massive hits for the future and then adding back the gains on a quarter-to-quarter basis. You have to take the hit now for what has gone bad, but not for what may go bad.

Consequently, as long as the stuff in the mortgage bonds goes down, you are going to have banks' bottom lines be impacted ... negatively.
You want to sidestep it? Sell the Bank Index." (BKX 88.02).

Of course a way way back on Feb 1, 2008 he said this about the banks in an article called "A BULL CASE FOR BANKS."

"Banks -- not leaving them.
Period." (BKX 96.11).

And of course on January 30, the day of the 50 bps cut Jimmy offerred up this at BKX 91.15.

Of course Jimmy also told us recently that he was going to be more of a long term investor for the CNBC audience.

RSI (2) levels end the week as follows:

SPX 30

DJIA 18

NAZ 52

NDX 62

RUT 39

MID 53

BKX 26

XLF 18

NYX 20

Have a nice weekend.