Tuesday, April 13, 2010
Even one of the most manipulated sectors is about to exhaust and retreat - the banking index. around 56 the current leg will top out and the least we should be looking for is a decline to the 48/50 area. Losses will be mounting again as the commercial real estate is eroding faster and foreclosures for retail keep up their pace on the other hand we have the free ride fabricated by the FED with the steep yield curve creating profits on back of Mainstreet as they get no interest for their money and loose by inflation. Still even the accounting standard change by Obama which is a cheating vehicle does not change the fact that banks keep bleeding in real terms as the real employment situation has not improved. That is usually not reflected in stock market prices short to medium term as manipulation is a big part of the market momentum and markets are not acting rational as many may believe.
Posted by getagrip at 4:30 AM