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.


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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