Can we trust any rallies that don't include the banks? I know that the market looks terrific with the Colgate (CL) cohort AND the retail sector doing terrifically. But, I think the key to this rally has been the end of the endless decline in the financials.
However, my screen has Bank of America (BAC) and Goldman (GS) retreating, and that's something that is NOT what I want to see right now.
Given that the reasons for this market rally are job growth and no European catastrophe, I would have expected the banks to go up, not down.
Make no mistake about it, an up opening followed by a quick U-turn down, then followed by an up move is real real good.
I also think there's a better tone to the whole world a la Baltic Freight, Suezmax and rail car loading, and the jobs number.
But, I would be content to take some profits before the weekend begins. Doesn't mean that I think the market is going down.
Does mean this rally's been tremendous and I wouldn't want to overstay my welcome. We are evaluating same for Action Alerts PLUS where we have put a lot of money to work and have made a goodly amount back this week vs. the market.