A couple days ago, I mentioned that when SPY touched 140~141, we might see a local bottom which came true now. However two days' due rebounce is just a short term effect. Be patient!
Financial stocks are oversold, and may be due for a bounce," declares Dan Amoss, editor of Strategic Investment. "But they are not out of the woods yet."
Hmmm....
Dan's assessment seems balanced and reasonable, but we're not sure WHICH part of Dan's message deserves greater weight: the "due for a bounce" part or the "not out of the woods" part.
Financial stocks certainly seem to be due for a bounce. Most technical indicators for the financial sector portray a "deeply oversold" condition. And most gauges of investor sentiment tell a similar tale. To top it all off, most anecdotal evidence seems to be screaming "Buy!"
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