Seems Like Old Times…
Apr 21, 2009
Posted by Jody Eisenman | Filed under Uncategorized
Just when you thought it was safe to go outdoors again, the market reverted back to its’ old pre-March 9 tricks. As I suspected over the weekend, the market rally ended at least temporarily today with about a 4% drop. The financials, which had risen dramatically in the last 6 weeks, got absolutely clobbered. C, which hit a high of $4.48 last week closed today at $2.94. BAC released earnings that did not exactly enamor the street, and the stock dropped over two and half points to close at the days’ low of $8.02. American Express (AXP), which had closed at $21.81 Friday, closed at $18.98 today. Remember the REITS that were so strong? Vornado (VNO) and Simon Properties (SPG) each lost almost six dollars each. It was not a great day to be long. As I continue to preach, this is traders’ market. If you don’t have the stomach for these big swings, you probably shouldn’t be in it at this point.
I found it quite humorous to read and listen to all the bears who came roaring out of the caves today screaming “I told you nothing has changed!” However, since there is very little correlation from day to day on Wall Street nowadays, tomorrow could be radically different. Its’ certainly a great traders’ market if you can spot the short term trends in advance.
According to several sources, the Government will release the results of the banks’ stress tests in the first week of May. It will be interesting see both the results and the ensuing market response. In the meantime, I expect the markets to continue to gyrate wildly in reaction to any or all news. The short term traders continue to dictate market direction on a daily basis.
