Tuesday, July 21, 2009

Banks are Bunk

In last week's sector column I suggested that the banks looked like they were rolling over. Of course, the market took all boats higher last week but the BKX index failed to make a higher high - no not a higher high than its previous rally peak but its most recent swing high. The S&P 500 has equaled, more or less, its highest rally high. Even the lagging Russell 2K took out its most recent swing high (in its bear flag).

Monday, Dow up 100, BKX was red. Tuesday, Dow up 67, BKX down a whopping 3.1%.

While I am starting to get hate mail from my column, and yes, I missed the 8% rally, but I am not in this for one week swings.

Believe it, or not


Nelson said...

Anyone sending you hate mail because he doesn't like your advice needs to grow up and take responsibility for his financial decision making.

Thanks for your as ever interesting columns.

rb531 said...

I concur. Its the frustration that they missed the rally more than hatred. They gotta blame it one someone.

Quick Takes Pro said...

The fate of anyone in the public eye, and that includes little old writers like me, is to be called an idiot every day. Go read the comment boards on MarketWatch.com and wonder why anyone would write a column there.

But I use this as a contrarian indicator. With a skew that hate mail is always greater than love mail, the more hate I get (hate is probably too strong of a word) the greater the odds that I am right.

rb531 said...

Today S&P crossed 956 and I hope it doesnt close above it. Even if it does, I dont see any reason why its trading at these levels still when WFC says the charge off's are mounting and no top line growth. Hope things start to make sense sooner. But the contrarian in me thinks there is another 5% move left.

William said...

Looks like we might get a shooting star candle today following a hammer yesterday... connect that with a shooting star on 6/11. Top reached?

joed said...

With regards to your most recent GT column. Any meaningful bottom in any market needs to have have a MEANINGFUL bottom, In my humble opinion 780 to 820 would be great and this much I anticipate. Great work as always Michael and cheers!