Looks like all the bad news in financial stocks isn't quite priced in just yet. They are again straight down led by C WB BAC JPM GS LEH LM MS RJF and all the exchanges- and the RUT/NDX green or flattish while the DJIA/SPX way down.

NYSE- 670 net losers;

NAZ- flat internals;




DJIA 7 GREEN led by MRK HPQ IBM MSFT XOM AA 23 down- with the worst being BAC CAT AIG AXP HD C DD JPM;

VIX- higher by 2.7% at/near 21.75;

Down volume 2.5X the up;

Crude about $.50 higher but that will surely change at 10:35 EST- as the inventory numbers appear- Natty gas - crushed again by 2.4%;

Gold higher by $10 to $825;

This early day sell off may get bought before the day is over but I doubt we get back to break even-downside targets on the SPX - probably in the 1250/1260 area and after that - hopefully no lower than 1200- but that is a ways off.

Note the Quant on the SOX;


Blogger tamworth said...


I dunno..with the BKX making a 53.7% gain from the recent lows to the recent highs, it's inevitable that it consolidates here...but is it so bad out there that it makes new lows here?

I doubt it.

I like the comp 2350-2370 are for support here..and am playing it that way...with stops of coure..


Afer that, I'm looking for a test of spx 1330...and after that higher!!! The world is not coming to an end..and I think a 58% decline over the past year in the BKX is probably ...enuff...

1:47 PM  
Blogger DAVID said...

I think many of these banks are insolvent - if/when real estate drops a bit more- some banks go bankrupt-

2:06 PM  

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