This morning, panicky investors sold their holdings again amid the bearish sentiment that the economy is slowing down and some areas such as the Philly is contracting again.
The high volume in the morning suggests the many sellers including some short traders.
In the afternoon, the market started rallying, rebounding near a support level. Could this be the technical rebound? Meanwhile, Doug Kass has been telling everyone that he is bullish on Financials. This is quite an important news as Kass is widely respected by Wall street. Many funds will blindly follow this smart guy. And this is what may boost the price of Financials. So far, Financials have been dipping even after his statement. This seems to be a steal now. Citigroup at only $3.75, that’s a huge steal.
The market has seen its worst state in July, due to news of poor consumer confidence and the closing of positions before the long INDEPENDENCE day weekend.
Current Situation
America hates OBAMA as he failed to improve the job prospect of America. Empty talks… YAHOO boards are full of OBAMA hate and it is not unexpected. I don’t know how this affect the markets except that it weakens the consumer sentiments.
Reality is that the recovery is slowing down to a flat line. Economic indicators will be hovering around this flat line, some months shocking us with negative growth, and other months pleasing us with positive growth.
Technical Situation
The volume of this rebound was significantly high, and this could be a short term reversal until the market sees a healthy job market. The market wants to see unemployment claims drop below 500k. The market does not like LAZY Americans who wants to receive claims. Market wants more people to be employed, wants corporations to hire this useless ppl idling at home and collecting free money from the government.
1 comment:
I enjoyed reading this post. Keep it up!
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