Thursday, May 21, 2009

Ebb and Flow

The battle continues but the bears won yesterday. The market opened up nicely on good news then rolled over at around 10:30 and closed down on the day.

If you are a bear and the ongoing weakness in the financials is key to your theses, BofA's successful offering Tuesday evening was very bad news indeed. That cohort needed the market to roll over yesterday.

If you're a bull, you got the best possible news from BofA and the market went down. Ugh.

The market is still up a lot in thae last 10 weeks or so. We were/are going to have a correction at some point, even if this is a new bull market. Futures are looking weak but I remain in the cautiously optimistic camp.

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