Thursday, April 12, 2007

Thursday's Rebound

Been keeping a close eye on Citi, GS and the overall banking index as a proxy for the market and these are diverging today from the overall strength of the market. In spite of Citi's cost cutting announced yesterday, the stock has done nothing. GS is also doing nothing today and this coupled with a BKX that is lower by 40 points has kept me out of the buying mood. I have some shorts, primarily in the tech sector and more longs, which are hedged with some SDS and some puts on the QQQQ and the SPY. I am not going to get too bullish here until we see 1450 taken out on the SPX and the bankers and brokers showing some sustainable strength. Would like to see the BKX back above 114, GS above 210 and C back above 53 before I get into a buying mood. So meanwhile, I am content to wait and forgo some money on the upside to see how this whole thing resolves itself. Fed comments yesterday sure seemed like they were in a wait and see mood, so I will join them and give it some more time.

5 comments:

Anonymous said...

I sold everything in my trading account last Monday. It was a long week to be in cash.

What with and when should I get back in?

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