It’s been a slow motion decline with no major casualties yet, but they certainly are heavy. $14 is a big number optically, but the real break for XLF is $13.74.
The big theme is the TARP babies, Citibank, Bank of America and Wells Fargo, watch them at all costs. They all priced mind boggling secondaries in the last couple of weeks to get out from under TARP. They all need to stay above their secondary pricings, a break would be really bearish for the group, and would mean that institutional sponsorship to defend the bid is weakening.
Here are their secondary prices: BAC $15, WFC $25, C $ 3.15-by the way, BAC closed below the price, C traded intraday below the price and WFC is still above the price. Holding these levels I think is critical from a confidence stand point. Mostly optical and psychologica,l but it does go deeper as far as institutions view things.
Today is triple witching so things could get volatile, so strap on your headgear.
Climatehagen is deadlocked
Iran has taken an Iraqi oil well in Iraq.
RIMM beats.
Oil higher.
Oracle beat