Posted on 09/01/2009 9:22:16 AM PDT by FromLori
The U.S. financial sector was sharply lower on the first day of September as investors nervous about the summer run-up and the new month's bearish reputation fueled the selling momentum.
Shares of bailed-out insurance giant American International Group Inc. (AIG 36.46, -8.87, -19.57%) took a major hit for the second straight session after their recent surge.
AIG more than tripled in August as traders bid up other so-called high-beta financial stocks such as Citigroup Inc. (C 4.64, -0.36, -7.20%) , Bank of America Corp. (BAC 16.82, -0.77, -4.39%) , Fannie Mae (FNM 1.65, -0.28, -14.51%) and Freddie Mac (FRE 1.97, -0.32, -14.06%) .
Markets are concerned about a potential pullback in highflying bank stocks in September after the summer rally. An exchange-traded fund tracking the financial stocks in the S&P 500 Index (SPX 1,002, -19.11, -1.87%) , Financial Select Sector SPDR Fund (XLF 14.17, -0.53, -3.61%) , rose 13% in August. The SPDR KBW Bank ETF (KBE 22.59, -0.94, -3.10%) jumped 17%.
AIG 36.46, -8.87, -19.57%
60504030 242526272831S Still, many investors are bracing for a correction in September, which historically is the worst month for stocks. See Trading Strategies for September.
(Excerpt) Read more at marketwatch.com ...
Yeah but...but the green shoots, what about the GREEN SHOOTS!!!
Good thing Manchester United sold Christiano Ronaldo. Wonder if Rooney will be next? Real fire sale for Sir Alex.
I moved completely out of stocks yesterday.
Nah, I think Sir Alex is being smart and not getting into bidding wars with Real Madrid and the team from the Eastlands.
United will be ok, they probably won’t win it this year, but they’ll still be top four. I don’t see Madrid passing Barcelona even with all of their signings, and it’s more likely they will be the ones doing the “fire sale” before it’s all over.
Like I told another I think that is wise if you consider even the history of Sept./Oct. alone and what the hey you can always reinvest later and you will still have something left to do so.
[my technical analysis based on DJIA]
We are coming to the end of an inverted head and shoulders. Normally a head and shoulders / inverted head and shoulders shows a market shift to the opposite. So an inverted HS would indicate a reversal of the previous years downward trend.
However, the IHS has run it’s course and volume/pricing is not able to sustain a growth pattern. The neckline of the IHS appears to be about 9000. That is a critical support level. If we break below that point, then look for a significant drop and the next support at 8000 (last low point of the drop / right shoulder). If we break that, next support level is all the way down at 6500.
Stochastic (both fast and slow) seem to indicate a coming drop.
Yep. There really are times to just sit on the sidelines, unless one is skilled at shorting. I’m not quite there yet.
try Proshares Dow Short (DOG)
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