Tuesday Outlook: Financials Under the Gun

This could be the greatest show on earth and you should really give traders a hand. Markets opened strongly on the back of oversold conditions, a stronger dollar, weaker gold, oil and commodities. But later with Fannie (FNM) and Freddie (FRE) crushed along with others in the financial sector, stocks fell off a cliff.

It looked mighty grim for awhile yesterday afternoon, but Da Boyz and their allies were there to save, if only temporarily, what was turning out to be horrible day. At the stroke of 3:00 PM, 12K contracts, mostly on the buy side, hit the NASDAQ eMini contract and the short squeeze began. While prices faded into the close the action was spectacular all day.

Volume was again heavy and breadth horrible. Yahoo Finance has trouble with numbers and maybe that’s a reason they can’t figure out Microsoft's (MSFT) bid.

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