After Market Commentary

Nice little Rally

By Mike ⋅ November 6, 2007 ⋅  Email this post ⋅  Print this post ⋅ Post a comment

As I was looking at my screens in the morning, I noticed strength in most stocks but Citi kept the rally contained as it continued to hit lows. The possible fallout on others in the group was still in the minds of many but the Dow Industrials managed a late day rally and end at the highs of the day. There was some good action in the morning on Citi on the short side and Wm on the long side. ABK was another excellent mover with a good oversold bounce that lasted almost all day but which lost some steam at the end.

Citi threw me for a loop today since I assumed it would be a good long today from yesterdays heavy volume reversal. The selling was very aggressive and some size bids were getting smacked immediately as soon as they appeared. On the other hand, Washington mutual was on fire from the very start and managed a 1.5 point move up. Wm is a very hard stock to trade and I consistently have a difficult time reading it. It seems to move opposite of the other stocks in the group, which can be a problem if you look to trade it by sector movements. I’ve made more money taking the contra position from what I think it should do in fact. Don’t do this with your trades, but be careful when you find yourself in this type of situation.

We’ll see tomorrow if this rally has legs to it, which it should but you never know. So much of the movements are news driven these days that sentiment changes by the day, but I’m looking forward to trading these financials tomorrow. They certainly are fun to trade :-).