Monday, June 23, 2008

Banks and Housing




While the large cap indexes are testing their March lows, the banking (middle chart) and housing (bottom chart) sectors have blown through those levels to make bear market lows. It's difficult to imagine the Fed aggressively raising rates with these sectors on their heels; that outcome might just rival the fate of the dog who decided to chase something other than his tail (top).
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4 comments:

Marc said...

Ouch!

Brett,
I've been following the TICK and making profitable quick trades (long and short) over the past few weeks. It's been a good tell so far.

What I'm wondering about is the longer term picture. In the face of daily bad news we have a VIX that isn't shooting up as the market trends lower. Either everyone is getting desensitized to the bad news or we're in for another big drop. Then again, there is record short interest which can fuel a big rally.

Wondering,
Marc

Swing2Freedom said...

Oh My Gosh ....
hahahahaahha ......

that dog is .... funny :P

CharlesTrader said...

An interesting article on the psychology and physiology of "The Itch":

http://www.newyorker.com/reporting/2008/06/30/080630fa_fact_gawande?currentPage=all

Charles

Ana said...

Brett

Is that your dog? quite a contortionist!

A loyal companion for sure!

I have been sitting on my hands lately unlike your dog....