Things were moving along splendidly until about 2PM when the bottom seemed to fall out. I was trying to be patriotic and buy stocks, giving the bulls respect for their recent display of power, I was long BAC and UYM on several different occasions until BAC just could not move another penny–it was exhausted. It was about the third or fourth time it tried to get through $8 and failed. I got pissed and shorted it-it closed at $7.22. I also went long SRS which exploded as IYR folded.
I won’t read into the pullback today as anything more than profit taking, and a pullback is always healthy and constructive after a big move up, but the bulls would have loved to have closed in positive territory with more sideways type action (although it was ugly-lol). Meredith Whitney has started her own firm as we all know, and I sent her a congratulatory e-mail last week. She still thinks the financials are far from a bottom. Still a traders market.