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To: Giordano Bruno who wrote (364719)	4/7/2008 12:41:24 PM
From: ldo79	Respond to of 436258

jj - watch the herd when it gets spooked........ Monday, April 7th. - Stock Trends, Charts, and Commentary It didn't work ... Treasury Secretary Henry Paulson announced his plan last week ... which was supposed to establish strength in the financial sector. Some TV personalities said that Paulson's initiatives marked the bottom of the financials. We didn't agree and said, "once the emotional reactions pass we will still be looking at a very long term picture relative to any regulatory implementation". At the close on Friday, the Banking Index (see the chart below), was still in a consolidation and below its resistance line. The index has more work to do before it finishes its consolidation and decides whether to move up or not. Something that has not been factored in yet: Most investors know that the Fed has been beefing up on employees that can handle bank closings. The media coverage has been saying that there were about 100 banks that might have to be closed. Recent data is suggesting that there are only 76 banks on the list, and that not all of them will have to be closed. That's better news than future expectations being promulgated, but none of these banks have been closed yet ... and when news starts to come out about these future closings, investors will have their normal "fear based" reaction. Unless some larger, negative surprise comes out before then, the fear reaction will be overstated because these 76 banks represent such a small portion of the overall banking system. tinyurl.com