Really, I mean where were rates supposed to go anyway? The market rolled over because Bernanke said things suck. Europe is slipping into bankruptcy as slivers of Greece slide into the deep blue sea. If you take $AAPL and $SMH out of the equation the last couple of weeks you will see how absolutely depressing market breadth has been. See coal $KOL, steel $SLX, materials $XLB, metals and mining $XME, and copper $JJC. To me it spoke volumes, yet planet earth bit their cuticles and prayed on bended knee that The Bernanke would take out a pacifier for this market. This does not mean that Bernanke won’t try something else and it may come as a surprise next time. I don’t know what it will be, but it keeps me on my toes.
Yesterday Moody’s downgraded $C, $BAC and $WFC. I find it sad and amusing that Dick Bove said the whole Buffet cash injection to BAC was nothing more than “public relations”. The deal stunk from day one and was one very expensive form of PR. Shareholders got hosed and dilution was epic. This is the state of our banks now. I love when the private sector starts to mimic government with smoke and mirrors. Pathetic.
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$SPX 1100 better hold. Good luck out there.