Market Outlook

Finally, a pullback! I am not too fearful, as this is a much needed correction. The oscilators are balancing and we are due for another 2-3% down probably, then we should rip higher....if the "voices" are not lying to me. The voices in my head have about a 92% win-rate, so with the disappointment in FTK, GIGM, and ultrashorts, they tend to be okay.

As for buys, I bought the dip but not too agressively. I feel if you had a sizeable cash position, why not buy the dip? Everything had a 3-10% haircut and the stories behind most did not change.

I highlighted this morning some negative headwinds facing the market; however, the trust data release for Citigroup (C) and American Express (AXP) was very positive from my interpretations. I am not too big on either stock (although I will buy C around $3) the data doesn't lie. Defaults are stablizing and NCOs are reducing, which I love. Bank of America (BAC) will remain my top bank play for 2009-2011, but for others to look at one dips: Visa (V), Mastercard (MA), JP Morgan (JPM) and more speculative ones like Sallie Mae (SLM) and Hunington Banc Corp (HBAN). All in all, this was healthy and I expect it to dip further but incase we don't I bought stuff yesterday. I am more positive on the market, after seeing this, because we "sold the close" which some see as bad but I disagree. I will likely get more agressive towards the next few weeks and push harder on the long side.

RF Top Pick: LPX on scale