Tuesday, June 17, 2008

The Worst Over?

What I meant to say in my last confusing post, is that it seems like yesterday that I posted the chart of the XLF(see June 1 post). The intra day low in XLF occurred on June 11 at around $22.33, the prior low was the March low of $22.29 which has not been broken yet. My bet is that this time it will get cracked and where she finds support I have no idea. Goldman Sachs was out with a report that they think the banks will need to raise an additional $65 billion. What's 6.5% of a trillion between friends. I'm short UYG since the mid morning and WB. I am also short LEH for a retest of the lows. I think some investors were looking for GS to save the day but it didn't, which goes to my practice and theory that owning a weak stock in a "strong" group is far superior to owning a strong stock in a weak group.

I traded some SOLF early on and made some loot with NIHD. Keep and eye on the latter as the chart looks good but it needs more volume.

We have triple witching on Friday and I don't trust the eps from MS that will be coming out tomorrow before the open


Stewie said...

dude. those financials just won't GO AWAY! Without the financials this market would be up 50% YTD. lol!

upsidetrader said...

i know, it seems bottomless, the question is can the market rally to any significant degree without the financials. I highly doubt it. What group will lead-commodities?. Not a bullish sign.

About Me

My photo
I am a former hedge fund manager, broker and capital markets dude who now trades for his own account. I love what I do. I will try to post some stocks and an occasional chart that looks attractive for entry.I will also try to point out the idiocy of conventional wisdom and the lack of value added by the mainstream financial media. These postings should not be viewed as recommendations.