Thursday, October 18, 2007

Qs advance; banks stumble

The Qs showed some early instability, but got a late day breakout to finish solidly in the green as tech proved to be the sector of choice. The other major indices (DIA, IWM, SPY) finished in the red, dragged down by the financials, consumer staples and housing (which look poised to break through to new lows.)
The VIX popped up at the open, then faded down for the rest of the day to finish essentially unchanged.
The big news today was the financials, with BAC and WM getting slammed on poor earnings along with other elements in the sector, including the XLF. The news was not unexpected, but the consequence was swift and dramatic, with the commercial banking sector losing over 20% for the day.

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