Tuesday, February 3, 2009

MA | RS | SHLD | GNK | RIG

XLF remains a sell, with an anticipated buy to cover signal coming later this week. The fact that it performed so poorly today while the market ate up 141 pts doesn't suggest to me the threat of an immediate reversal. I imagine that reversal will come only when the inevitably brainless announcement is released in the weeks ahead. That said, if/when it happens, it will be quick and violent. Just the mention of creating a bad bank, last Wednesday, moved XLF against me 12%, from which it just finally recovered. I suspect a further drift lower this week with the help of some less than positive economic releases.
Below are some additional ideas.

MA


RS


SHLD


GNK


RIG

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