Monday, December 29, 2008

Continued profit taking into year end


It appears to me that profit taking continues to influence the markets as is evident in the heat map attached. There is not much profit taking left in the financials after they where ripped apart during the short covering ban, at least not enough to cause prices to drift higher into year end, however those sectors that collapsed, ie. the energy and basic materials sectors are now drifting higher as those folks with substantial profits take them this year, ahead of any potential change in tax policy. The builders and reits however, continue to see selling pressure and in my opinion will not present any near term oppertunities to get short, forcing those that want to catch a ride to chase prices lower.

No comments: