SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : John Pitera's Market Laboratory
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Hawkmoon who wrote (8628)1/7/2008 1:37:22 AM
From: nspolar  Read Replies (2) of 33421
 
"And let's face it.. the SPX, which is burdened by so many banking stocks (18% I seem to recall) is going to continue to be pressured as the mortgage overhang is work out over the coming year(s)? So where will investors money go?.."

You make a very interesting comment.

The SPX has probably lagged most other major indices. The financial content could be a reason then, no?

But ... at what stage are financials in? Are they headed down to the very bottom of the abyss, or will they make a powerful reversal this spring? If it is the latter will the SPX make up some ground on the DOW for example?

Only questions for the moment ... it best we let this correction continue onwards here, before we comment with some charts. The bottom(s) are not yet in obviously.

We do however think the sentiment for financials is getting quite deep, and it seems there is some smart money willing to pick up (or hold) some of the pieces. Quite an era we are living in, imo. And if one looks at those monthlies, the TA parameters are quite deep as well. History suggests that sharp and deep sell-offs in financials are followed by powerful moves up.

To finish a question for you ... How do financials do in times of serious inflation? I ask because I am curious. I do not know.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News