Tag Archives: Market recap for Monday

Stocks to Focus for Tuesday – April 21, 2009

I expected some pause or a moderate decline in averages following Friday’s option expiration …. . but, what happened was a  brutal Monday at the market.  Sellers dominated and crushed stocks and handed major averages worst percent loss in more than a month. All 10 major sectors in the S&P 500 suffered sharp losses.  Financial sector was the worst performer with 11.4% decline.  As I noted last night, there’s still uncertainty about the health of banking sector and what kind of a role the government would play.  Day to day news events dictate the sector performance.  Be vigilant for news events and be agile in navigating the markets during the next couple of weeks. 

For the day, Dow fell 290 points  or 3.6 %, to 7842.   S&P 500 lost 37 points or 4.3% and closed at 832, and the Nasdaq fell by 65 points or 3.9% , to 1608.  Crude futures fell $4.45 to $45.88 a barrel, while gold rose $19.60 to $887.50 an ounce.

In my opinion, nothing has changed with the banks from last week or a week before to this week.  The numbers that BAC announced are not that bad for the markets to move that negatively.  It is the negative perception that led to profit taking and intense selling all day today!

I’ll not have new picks for Tuesday.  However, I would not mind buying FAS (3X long in financials) if it trades above $6.96, and with an initial profit target of $9.60.

Happy trading ….

TaurusTrader

http://www.taurustrader.wordpress.com

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