Thursday, November 01, 2007

CNBC market wrap up DOW -364


I just got done listening to CNBC's closing bell wrap up with Maria and a panel of 6 she interviewed.
The talk that I heard was-
-Derivative credit is bad and might get really bad
-Foreclosure trend is only 1/3 of the way there
-Short Financials and Long Tech is the oldest trade in the books and a lot of money is bet on this trade with a continued bias until next year
-The FED should focus on deflation, and should have cut 50bpts
-Bob Pisani thinks the XLF/SMH trade could reverse big time from the heavy bets in that direction (I've had the same contrarion view, is this bad? Is this the way dumb money thinks?)
-The bank sector is at 5 year lows
-Investors in Nasdaq 100 are taking off profits after an 18% gain for the year
-Volatility is going to increase going into the year end

My thoughts- the forclosure decline looks like it is due for a bounce along with financials but it is tough to say when this trend will reverse. Bond futures look like they have hit resistance. I'm expecting next week to be BULLISH.

1 comments:

es-hmuz on 7:18 PM said...

There might be a decent upward bounce on low volume tomorrow and Mon/Tue, then expect the downtrend to continue.

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