Thursday, April 29, 2010

If P... (or two small plans for near-term)

Financials closed a little weak today (Thursday), while the broad market finished impressively.

The rest of the day was consistent - both sides strong.

Tonight there was a new/not so new WSJ article regarding GS, generating some selling amongst money-center banks.

If financials gap lower Friday, it's difficult to say yet whether they'll rebound or sell further from there (the latter is possible, yes). But I think it's safe to say non-financial leaders (some of whom were up only modestly today and could see catch-up bidding/rotation tomorrow in the event financials are bouncing from opening levels, or at least stable.

I've already let go most of my smaller-cap leaders (especially those with Eastern zip-codes) and I'm net-short big financials (MF-long vs. the money-center world short). I can more or less stand pat if financials quell re-freshened animal spirits, or I can trade-long non-financial growth names referred above; either lightening then on financial shorts, or just waiting a little further for the positive development in Greece to take shape (Greece would see news of some agreement prior to Monday we should expect - if we're not leading lower already I'd like something more to sell into that news).

^^GS After-hours Thursday^^

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