With 30 minutes left to go in the trading day, I have yet to make any stock purchases. While I am antsy to do so, the volume to the downside is 4 to 1, which is a pretty ugly statistic (it happens about once every hundred trading days). That being said, I still believe the financials (Citi/Suntrust/Synovus/Etrade) need to be bought aggressively here.
The market was down by close to 3% earlier but it is only down 2% now and has come back from its lows b/c Senator Baucus, who is on the "Super Committee" came out over lunch and said that despite the congressional panel has not yet reached an aggreement, they are still pushing forward as they work to compromise on the debt deal. I don't know how to take what Senator Baucus said, but I am taking it with a grain of salt. Of all the commentators on the stock market channel, very few of them are saying that they like the markets...this could be a contrarian sign (buy when others are fearful and sell when they are comfortable).
If I don't make any stock buys in the next 25 minutes, I will most definitely loook to do so tomorrow. I also just noticed that since I posted this morning and mentioned how attractive Etrade was, the stock has gone from being down 2% today to being up 3% on the day!
It is important to note that with the holiday shortened trading week, the market is probably going to be very volatile as most investors look towards thanksgiving. With volume being low, there is a good chance that we will see big moves up and down over the next few days.
I'll talk tomorrow morning about the gridlock in Washington as well as the spreading financial crisis that is gripping Europe and how I expect both of these "issues" to play out.
Have a good evening
