This week was the worst week for the markets in three months. OK we got it correct last weekend calling for a move down this week and to be cautious:) After this week some bad charts are coming up and I see more selling in some of the weaker names. Today if you noticed, the financials got killed. Brokers and banks traded horribly and most ended trading at the lows of the day.
Next week should focus us on where they want to push us in the summer. I dont believe the volume will be super low this summer as most money managers and mutual funds are down for the year and will will be looking to at least get even before it is too late in the year.
What I would really love is a bounce next week and a push higher than this last push to get short. Look at GS touch $200 and lost is so fast. MER the same as so the rest of the financials.
Rumors are circulating that Bank of America numbers wont be good this quarter and that has the stock trading almost at its 52 week low. You all already know my stands on the financials: only the strong will survive as I see many of them being sold or going bankrupt. Anyone who believes Bear Sterns will be the only casuality of the mortgage market think again. I am now making my claim that a home builder will go under or be taken over after the terrible housing numbers reported this morning.
For the folks who dont want to buy ultrashort shares or be short, hey good luck but you better sell into the rallies as that's what the big money is doing.
I have got some crazy ideas for the next two weeks which I think will yield huge profits as usual, but we will see soon enough. Tuesday morning I will be posting a play which I think will be a MONSTER play.
Have a great weekend.
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