Courtesy of Street.com, this seems probable: Bank downgrades in Europe. Begat downgrades in US begat... wonder if we'll see N.A. analysts racing each other to the punch to meet and raise er, lower.. er they haven't a clue.
Pressers and Guessers, Pt. 1
3/14/01 7:13 AM ET
Holy cow, I woke up this morning at 4:30, looked at the futures and said, "What are you doing?" All day yesterday, it felt as if the masses were watching and waiting for the "phantom whoosh," and when it didn't materialize, the reactive types chased stocks higher. Oops.
This morning's lack of follow-through has to push frustrated traders towards "postal" mode. Tape watchers, including yours truly, will tell you that yesterday's action would usually bode well for, at the very least, this morning's session. Just goes to show you that, when it comes to this market, all we are is dust in the wind, dude.
Seems that one of the catalysts for this red mess is a widespread downgrade of the European banks, which in turn, pressured the bourses. Throw into the mix emerging market concerns (and yesterday's short covering), and the supply/demand curve shifted to the sell side overnight. It's important to remember, however, that the preopening is an indication and not a destination. Just as we forced ourselves to make sales yesterday, we're doing the same thing this morning the other way. It's a long day, friends, so stay focused. |
