Geithner got bludgeoned like a baby seal yesterday as our national disaster continues to get politicized. What a carnival show. Dennis Gartman is out this morning saying that someone “fat fingered” the dollar and that’s why gold sold off, we’ll see if that’s true and we’ll be watching the buck to see if it gets resolved. One helluva fat finger if you ask me.
We start the day below 1100 and trading should get lighter, but not necessarily less whippy as Thanksgiving weeks in the past have had a tendency to move around on light volume. The dinosaur that is DELL disappointed after the close and that comes on the heels of a major chip downgrade by BAC yesterday. ACER (yes Acer) has taken the #2 spot in the world behind HPQ as DELL falls to number three.
I think the financial sector put in the highs for the year this week and with a wet blanket on tech sector, the only trade that makes sense to me on the long side are materials and maybe oil, but only on dips and with tight stops. I trust this market as much as I trust Geithner on AIG.
Options expire today so look for some volume, I think housing could go on hiatus for a while (I’m short XHB). Short term treasury yields are seeing lows not seen in forever and it will now take you 6000 years to double your money at current money market rates. Hello Japan.
The bulls are still in charge unless they want to split for Aspen early for the Holidays. If they do pass the baton to the bears, things could get interesting.
Have a great weekend.