After Market Commentary

Sick Market

By Mike ⋅ November 9, 2007 ⋅  Email this post ⋅  Print this post ⋅ Post a comment

What a wild day in the markets! We had amazing strength in the financials that helped some of the other sectors move higher but was met at 3:25 with aggressive selling out of positions that pushed the markets down close to it’s low’s of the day.

I was busy most of the day trading Citi on the long side. As I posted in my morning call, I felt that the financials were long overdue for a rally and that’s exactly what we got today. There was an oversold bounce in many of the distressed groups, such as mortgage insurers, broker dealers and retail banks. It was however, a very choppy day with the TICK bouncing from 1000 to -1000 several times today. The selloff at the end of the day was very suprising, although I suppose noone wants to hold onto the financials over the weekend. So much bad news is surfacing these days that you don’t want to be left holding the bag after another warning. In fact, warnings from JPM and Bank of America on more credit related losses probably spooked the longs at the end too.

Considering that we’re so close to breaking the 13000 level again, next week promises to be an interesting trading week. Have a great weekend everyone!