Ahead of the open, (20-03)
Tuesday, March 20, 2012 at 07:14AM
Demi/ YourPersonalTrader in BKX-Financials

Despite, SP hitting a fresh high of 1414, the trading day was quite uninspiring in full as some profit taking ensued by close.  In all, it’s good investors didn’t start with some profit by the open following Barron’s positive housing cover story and the ‘Economist’ running another possible contrarian front page story on the economy. (Weekend was void of anything material to give market any direction.)  If anything a FT article on earnings season should have provoked some selling as it talked of SP forecasts earnings to fall .5% Q1Y/Y.  Yes, a decline for first time since late ’09 with margins falling for the first time in 2 years.  Considering, the market is going to be driven by the economy, this is something for shorts to chew on it and spit at the Bulls as nothing is assured as far as growth is concerned.

We just came off a big week of gains in BKX (financials), builders, industrials, steels all up 4%-8%, so it’s really not surprising the market started to take some profits with the financials leading the way, which have had hit the 30% gains mark.  At this point, the late profit taking may continue, but it’s for the right reasons as it will give those underperforming a chance to get in before Q end/month end.  A revolving door you can say with some exiting and some entering.

Article originally appeared on Your Personal Trader (http://www.yourpersonaltrader.com/).
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