The market gave back a bunch yesterday but redeemed itself with a strong rally in the last 25 minutes of trading to close higher. There is more heat on auction rate sellers and attorney general Cuomo wants JPM,WM and MS to write some checks, also prime residential mortgages are showing record defaults. On the plus side Russia has ended its military action in Georgia and oil is off a buck so far. I missed this gold move down but I won’t chase it here.
The write offs continue in the financials and I am watching that group for shorts. Also, the commodity sector should stay in play here.