Well wow the financials did get in gear to the upside today. Don't get fooled here folks this is a classic elastic band move in a bear market. Financials the weakest sector here from the year start has logically got to get at least a snap back and today might have been IT or the start of it. SKF was down a whoppy 21% as the financials rallied and I am looking to get on board just so you know if it touches anywhere in the 130's. With the banks reporting this week and MER on the docks tomorrow we might just be in fairy tale land with these at the moment.
At the close I played some SPY puts and the reason behind this is simple whether it works or not is another question. The last few huge rallies we have totally given it back the following day and in my mind and I think those who are not fooled by the bounces think this will be one more opportunity to sell and not the start of serious buying. GS was up a whopping $15 today and again will face strong resistance in that $185 area once again. I can tell you already LEH and MER looks like some early bear flags and I will be looking to short these again.
The key for tomorrow will be if they can sustain this rally. If we give it up like the past two times then I think we will have a shot @10500 in a rush, if not and we add to the gains we could have a earnings run.
RESISTANCE AND TARGET ON THE UPSIDE S&P IS 1275. 30 Points away
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