We have bulls, we have bears...we even have a hot cow! I mean, this is Minyanville...and if we wanna have a couple of porkers, well, who's to say that's wrong? The banking sector auditioned for that role yesterday (on the back of the CMA blow) as it got waxed for 4 ½ % and led the broader tape down the slippery slope. After the close, BK (Bank of NY) chimed in with a blow of its own, and it's currently offered down 3 points.
I bring this to your attention because the financials are arguably the most important sector in the S&P and they warrant close attention. Aside from having a 21% weighting of the S&P, the financials (read: banks, insurers and diversified financial services) are also a microcosm for credit concerns, geopolitical risk and accounting worries. Further, they will reflect the risk in other Worldly economies such as Japan and Latin America. Watch the BKX (PHLX banking index) as the chief tell for the S&P in the days ahead, and let's use 692 and 670 as "support" zones (currently sitting right at 692).
Speaking of our neighbors down south, the Brazilian elections are being held this weekend and the current frontrunner, Luiz Inacio "Lula" da Silva of the Labor party, is not perceived to be the friendliest candidate for the markets. Still, he was recently endorsed by Brazilian business leaders (he's led the polls for some time) so it will be interesting to see how the Bovespa reacts come Monday. Yet another thing to put on our radar!
Finally, and in response to the influx of emails I've gotten this morning, YES, I went to Syracuse and YES, I have the diploma to prove it!
See you after the opening.
No positions in stocks mentioned
Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at firstname.lastname@example.org.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
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