Tuesday, January 20, 2009

Futures down

As I type the Asian markets are down a couple percent but off their lows of the session.  The US futures likewise are down, but improving overnight.

The news this weekend that the UK will capitalize RBS has hit the markets hard.  We'll see if the US can withstand this bas news and follow through on the upside from Friday's gain.  

Obama's inauguration tomorrow may distract traders.  Also, the Israel-Gaza cease fire may lead to a drop in oil as tensions relax.

I am hesitant to trade financials either long or short since so much of the trade is sentimetn driven.  Fundamentals are meaningless and the technicals are becoming strained.  Having said that, my bias is downward and any rally could be an opportunity to go short either with FAZ or individual short positions.

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