Markets: Why There's Some Weakness Today
If you're wondering why we are experiencing some mid-morning weakness, it shouldn't come as a big surprise. First, the Dow has rallied almost 900 points in 3 days--time for a rest, already.
Two, China has now become the new lead story of "Sunday night selloffs" so lightening up a bit into the weekend is not shocking anyone.
Three, options traders tell me there has been a spate of short selling in financials this morning, which again should not be surprising--I mean, did you think the shorts would give up this easily?
Finally, there is the usual "XYZ hedge fund/bank is in trouble" rumors floating around, with weakness in some European banks. These rumors are usually dismissed as the usual tricksters improving their positions, but given what happened with SocGenthis week these rumors are having a little more impact than they usually do.
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