Home > Lessons from the trading floor > Financials getting heavy

Financials getting heavy

Day trading the financials has been relatively easy for the last two months, find a spot to get long. Today may have been the kink in the armour. Yesterday the market had a very strong day with the DOW finishing up 235 points while BAC was floundering during the afternoon rally.

Today the tech stocks and specifically the QQQQ had a strong day and made new highs in the early afternoon while the XLF, SPY and DIA di not make new highs. We went out to the floor and told everyone be careful with agressive shorts this afternoon because of the divergence from what has been the market leader the past few months.

It took a while but the sell off happened in a big way after 3pm led by the financials. Good consistent trading starts out with learning the difference between a high probability scenario and mediocre one. Longs this afternoon were a mediocre trade.

Next few days will be interesting to see if the bulls have any steam left for the banks/broker dealers or if the money is starting to rotate into tech and coal stocks. Stay tuned

http://www.keystonetradinggroup.com/

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