Monday, October 26, 2009

Homie, Mo and Seven More Failures

Today's column covered pending breakdowns in the homebuilders and declining trends in the mortgage finance sector. I wanted to give Fannie and Freddie a quick mention as being part of the mo fi sector's decline but my editor said not to bother with stocks that are worthless.

Anyway, the column fit in nicely with last week's efforts when I panned the banking sector. Quick Takes Pro subscribers may have gotten bored with me telling them I did not like bank stocks but I suppose that any of them that found some to short are probably OK with it.

Dick Bove? Nah. He is a bank analyst that you should indeed heed but he was not the cause of today's bank-led reversal. The charts looks iffy last month and negative this month. The news over the past few days of seven more bank failures that took the year's total over the 100 market is just gravy for the bears.

I don't want to get caught in another bear trap as the market dips to its trendline but the stars (technicals) are lined up for something negative to happen here. We may have indeed seen the top.