Discuss Market Comments 06/28/11

Light volume rally - Stocks rallied sharply yesterday on light, holiday-like, trading volume. The Dow gained 109-points but that was 55-points off of the afternoon highs....

Current Daily Market Commentary

Market Commentary for 6/28/11

 

[kassypoo]

Thanks again for you daily commentary. It takes a lot of work on your part and it is greatly appreciated. I still think we're going to have what the techs are calling a "summer shakeout..." testing the 1249 S&P level. I'm going to take a little off the top if we get an end-of-quarter rally, and try to put it back in at a lower price. My timing is wrong more than right, however...(laugh). Enjoy the 4th!!

 

[tsptalk]

Hi kassypoo -
Nothing would surprise me. The market is the great humbler. It will probably find a way to make us all wrong. :blink: Thanks!

 

[law87]

Tom, why is financial sector lag so much?

 

[tsptalk]

I assume some of it has to do with low interest rates. When rates go up, watch the bank stocks start to rally.

 

[law87]

I assume some of it has to do with low interest rates. When rates go up, watch the bank stocks start to rally.

...so after QE? reason why i ask is i'm looking at FAS/FAZ now, they are mostly consist of finance.

 

[tsptalk]

Post QE2 may help, but it sounds liek the Fedmay no go down that easily. I_T posted this in his commentary the other day... Fed May Buy $300 Billion in Treasuries After QE2

 

[law87]

Not understanding the relationship between the fed and bank here I thought Ben want to help out the big bank, it seems like hes killing them slowly

 

[tsptalk]

They would like to be able to raise rates, but can't because of the weak economy.