With the recent vicious declines even on the backs of the Stimulus Bill and Homeowner Bailout Plan leaves me to believe that some sort of Bank Nationalization Plan is in the works. The market is trading like this is almost a given.
Remember that Banks & Financials make up about anywhere from 16%-19% of the S&P 500, so you can see the pressure that the market is under currently.
Does it also help that Energy and its equivalents are in total liquidation mode? Energy & Energy Services make up close to 1/5Th of the S&P 500. So when you have these type of headwinds hitting these two huge industries, the answer is pretty clear.
Crude Oil has become so dependent on the general health of the global economy that any and all attempted rallies are sold off furiously.
But remember the market will re-balance itself, that is why I like tech here. Painfully a little early unfortunately.
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