By Sellputs
IF you follow my ramblings on Stocktwits you probably hear me say, "the biggest moves happen when you least expect" after the market seemingly moves out of nowhere. Lets face it when we expect a macro move of the markets it usually does not happen on "our" clock, the market makes the decision. Today's afternoon session moved fairly quickly out of nowhere catching many participants off guard, creating a nice bearish feel. GS breaking lows every 30 minutes should tell you to get out of the way, *they are bringing in the market, IE we are getting out before YOU. Clearly there were rumors running around surrounding BAC turning on the presses, looks like SAC capital made a good trade. Lockin' in those profits.
The markets have loosened up the past two weeks or so, this is a seasonal market; a lot of deals are pushed through before the end of the year making for interesting trading. That being said, the timing of the BAC offering is suspect, just like last year... they wait till the last minute and drop a bunch of crap on the market in a short period of time right before a period of volatility. I suspect the reason why BAC has been selling for weeks is all the funds who were overweight are locking in those paper profits ahead of the dilution/correction. Their profits were waning fast in the chase for returns game.... money chasing money. ALSO, not all funds bought at the bottom.. The fundies suspected it was only a matter of time before banks started offering out more stock, sell at the top?
I believe traders have already started wrapping up the trade.NOW, you have "Fast Mula" pointing out today Goldman has "failed to make highs". now you really know its time to get out..!Whatever the case maybe, history tells you when everyone is super bullish something very bearish happens, the stars can align very quickly. stay on your toes.
