Friday, August 12, 2011

Wednesday's Casino Action

On Tuesday, the bulls breathed a sigh of relief when the market reversed and spiked up sharply in the last 90 minutes of trading. Today, we had the exact opposite action, plunging lower in the last hour after a failed recovery attempt.

Banks were the primary villains today, but there was relentless selling in many stocks. The folks who keep trying to catch stocks that are acting like falling safes are being crushed. When a big gain like Tuesday's reverses so quickly, it not only creates panic but also causes some market players to give up out of disgust. The mood is gloomy.