Well, the bulls tried but failed. The last fifteen minutes were responsible for about half of today’s decline of 223 Dow points. Longs simply do not trust the overnight trade. And day traders are making a living trading the last half hour. They simply trade in the direction of the break at 3:30pm.
Zero new highs and 370 new lows on less than 1.2 billion NYSE shares.
Somehow, the tone of today’s decline was more measured than last week’s. Not to say there were not double digit declines. Insurance shares were slaughtered as MET declined 21% and HIG down almost 27% despite seeking safe haven as a S&L.
Should the Senate clear the GM bailout on Wednesday I have the sense that we could rally but all bets are off later in the week with options expiration on Friday. Talk with you tomorrow.
