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April 18, 2006

If only interest rates were going to fall, Tues., Apr. 18, 2006, 12:57 PM

The world is awash in money and the sucking sound you hear is a FOMC cranking up.

That means that the financial sector is likely headed for trouble, which will lead this U.S. equity market south.

Compare the Sector 40 Financials of my Cara 100 vs the Sector 15 Cara 100 components I listed a couple minutes ago. These are not doing so well.


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There is a large percentage of pro traders who follow this blog. For each of you, hitting the ‘sell switch' is an easy matter. But think about the Moms & Pops out there who have been well served by my continued alarm that we are late in the 2002-2006 bull market.

I for one am not the least bit disappointed in seeing days like today. I know where I am positioned, and those sectors are favored.

If only interest rates were falling, I'd be joining the others who are buying up the financials. Alas, that's not going to be the case until share prices fall quite a bit from here.


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Posted by Posted by Bill Cara on April 18, 2006 12:57:30 PM | Category: 40 Financials , Cara Today in the Market

Discourse

this metal break out is ok by me...pcu...wow also cenx,ccj (pretty much all metals) looking good....also oil sands you mentioned a few days ago...su moving

Posted by: Bullring [TypeKey Profile Page] at April 18, 2006 1:54 PM [link]

OMG, they actually said that most thought they were near the end of the rate hikes. What an absolute gift to Wall Street.

Posted by: MarkM [TypeKey Profile Page] at April 18, 2006 2:11 PM [link]