Monday, March 03, 2008

Following the Financial Stocks

The banks continue to underperform, and GS has moved to a new low this AM. If institutional investors don't have confidence in the financial system and are aggressively selling these shares, it's difficult to imagine sustaining a bull move in stocks. Indeed, short-term traders have done well by playing off relative strength and weakness in the financial sector, as these stocks are capturing the hopes and fears of large market participants.