Selling picked up in the last 30 minutes; overall, the market remained surprisingly resilient on the poor jobs number, European sovereign debt issues, and Bernanke’s pessimistic view of the economy.
The S&P 500 continues to hang around its highs of the year. There seems to be some agreement on tax extension and unemployment benefit extension after hours. The reaction is very tame and is this priced in already? The market is a bit extended and we may back and fill in the next couple of days. After that, it is possible the performance anxiety of fund managers will kicking in until January.
The U.S. Treasury announced that it is selling 2.4 billion shares of Citigroup, and after the sale, it will be left with only warrants. Any weakness may produce a compelling tag end buy. Banks had being scrapping bottom for 6 months, 2011 may be their year?
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