Monday Belonged To The Bears

Coming off the weekend and looking ahead to the start of school years and the Labor day holiday, traders were decidedly negative with the markets today, selling off in droves. Once again uncertainty in the Financial sector was the biggest catalyst of downward pressure.

Stocks started the day lower with the major indices hitting bottoms by mid-day, staying around those levels through the rest of the trading session. AIG (AIG) stock was making the most noise after having its price target cut by an analyst at Credit Suisse (CS), following Friday’s rumblings of falling ratings against the insurance giant. AIG was down over $1 (around 5.5%) to under $19.

The debate over Financial sector strength has swung negative lately with the rumors of Lehman Brothers (LEH) potentially needing a bailout, or impending partial sale abroad. Coupled with the daily Freddie Mac (FRE)and Fannie Mae (FNM) exploits it makes for a Financial situation in the US as turbulent as any in recent memory. Although both Mac and Mae were up substantially in this session, the bottom dwelling trades have to be timed and even with slight rallies, the only real course of action for both appears to be a government-led bailout effort.

When that kind of talk is on the table, not even a 3% jump in Existing Home Sales can rally this market on this day. if(typeof Wikinvest!= ‘undefined’) { if(typeof Wikinvest.Wire != ‘undefined’) { Wikinvest.Wire.GetRelatedContent(’3472214615211879850′, ‘http://wcpowertechfund.blogspot.com/2008/08/buyer-beware-monday-belongs-to-bears.html’, ‘Buyer Beware, Monday belongs to the Bears’, ‘KrasowskiC’, ‘3′); } }

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