Well tech seem to be the early seller in the year. Today, BIDU down $25, Apple down $9, Google down $23 and I could go on. The solar stocks seem especially to be in sell mode and I expect more. Folks I can't reiterate how extremely hard a market it is to trade and news out there is that a number of hedge funds are minimizing trading here. With that said those who are trading can swing the market volatility around.
Lot of news lately from the bandwagonist saying market going lower but these were the same folks @14000 in september telling us we heading to 15000. Well I spoke it out loud then that we would hit 12500 on the Dow and 11800 next before ever even seeing 14500.
I think we are coming closer to a meaningful bounce which will set up some beautiful shorts such as GOOG, Apple etc. I think these stocks will go down hard when they finally flush us to the downside
Make no mistake about it, the derivative market in mortgages has totally collapsed. There is no secondary market left and those institutions that bet heavily on mortgages will surely have to keep those loans on their books for a couple of quarters. I think Citibank infusion of funds will not help and they will need additional infusion down the road. There will be no safe areas except ETF'S that are short based. Tech and Financials are the leaders and are showing broadbased weakness.
Today was a nice day to trade the ES futures and Oil if you were fast enough, it surely wasn't a day for those faith of heart and I wouldn't recommend trading a day like today without heavy trading experience and excellent direct access broker. Lets see what tomorrow will bring, we closed pretty weak and Ben Bernanke is talking tomorrow.
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