I got lucky today,,,or maybe I'm becoming a better trader, either way I made money today. I should have held my short on ER2 longer and waited for NYSE A/D to stop trending down and waited for the reversal in ZN. I traded the first hour and now I'm done because I expect to see chop for the next 2 hours and I've got work later.
Overall I expect bond futures to rise in the short term and for financials and the stock market to be weak and choppy this week.
I'm not sure what is going on with Citigroup, but they along with the rest of the financial sector are getting beat down ahead of the FOMC minutes.....Still Bullish? Maybe not so much on XLF.
I would remain bearish on BSC based on the institutional outflow of money in BSC and its associated weakness due to losses related to bets the company made on subprime securities and stocks such as CountryWide (CFC).
Conversely I would have a more bullish outlook on BAC based on the increase in institutional money and also the media backing it is getting by Forbes and Full services Brokers recommending it as a buy to their clients. How can you recommend a buy on BAC when they bought 2 billion worth of CFC right after BSC and a number of other funds dump their shares based on the subprime mess CFC got itself into? Does it make any sense? Do you think buying CFC was a smart choice by BAC? Well apparently it was according to what Cramer.
You see, they even have Cramer pushing BAC. Hear anyone pumping BSC right now?
How about Goldman Sachs; a company that will probably rule the world some day based on all the interesting facts I keep reading about.
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