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Minyanville's Market Recap: Sentinel, Financials, Sell-Off!


Brewing Sentinel Situation, Financials, Recap the Trading day!

Major indices all sold off today. The Dow ended down 207.61 points at 13028.92, S&P ended down down 26.38 points at 1426.54, and Nasdaq ended down 43.12 points at 2499.12.

The day began with the European Central bank injecting another $10.5 bln as ECB President Jean-Claude Trichet pleaded with investors to "keep their composure" as the markets would return to some sense of normalcy.

Later on, news broke of another fund, Sentinel Management Group, a firm that manages $1.6 bln in short-term cash for commodity trading firms and hedge funds, halting redemptions. The news added more anxiety to investors causing a sell-off in the financials even after all of the efforts of central banks since last week. Read more of the implications of the developing Sentinel situation in Professor Depew's Is This A Run On The Bank? What Sentinel Management's Redemption Halt Really Means. Just as important, please have a look at Why This Time is Different and Professor Reamer's Hedge Funds Out of Excuses? before jumping into financials.

Adding to the negative sentiment were UBS, Wal-Mart (WMT), and Home Depot (HD) all warning of challenging environments and issuing downside guidance. Minyanville had a number of warnings as well. Read Professor Cooper's The Market's Persistent Uncertainty for great insight into the "turbulence" that many of these "fallen angels" have encountered. Toddo also mentioned these warning signs in his article Answers I Really Wanna Know.

These certainly may be turbulent times, but it can also be one of opportunity. Reviewing through the Ten Trading Commandments should part of a trader's daily routine as it provides a guide through this brewing storm. Also have a look at Toddo's Blinded By The Light for some insight into his own trading strategies.

Below is just some of the idea flow on today's Buzz and Banter. Please note that stocks may appear on both bullish and bearish categories due to long and short term trades by our many Minyanville Professors.

Some Bullish trade or investment ideas: FCX, CBAK, WYNN, LVS, AMGN, DNA, HON, EMC, TLAB, GS, SUNW, CTXS, CSCO, BX, GLW

Some Bearish trade or investment ideas: IEF, SPU, GS, C, BAC, SPX, SPU, AMZN, YHOO, BA, FIG, BZH, FNM, FRE, LEH, GS, AAPL, UA, WMT, HD, VLO, LIZ, FO, GRMN, DECK, CMG, PCU
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No positions in stocks mentioned.

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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