Today marked the biggest volume day of the new year on the Dow, and it was all red. It was like the market professionals took an extra week off because they were so beat up from 2008 that they needed more time before they got back to work. And did they ever get to work selling two of the most important sectors in financials and real estate. The markets aren’t going to go anywhere without strength in these two sectors, so my bias remains to the downside at this point as my market timing system turned red today.
I realize that many bloggers feel that a bounce is due at this point, and we very well may get a one to two day respite from the selling, but that should be used to open new short positions in my opinion. I personally think we’re going to see strong selling in the days ahead that are going to leave a lot of people wondering why they didn’t see this coming.
Below are some stocks that popped up on my screens tonight in these two sectors that could be potential shorts in the days/weeks ahead.
BAC FHN FNFG HCBK JPM MTB STI USB WFC
