BEHIND THE MONEY: Profit Taking is the Norm After a 6% Pop in the Dow
After that 6.8 percent surge in the Dow yesterday, traders are likely to take some off the table this morning, especially in the financials area which led the gain. Plus, with the big event of the day being Geithner and Bernanke's testimony on AIG before the House, traders are seeing visions of last week's grandstanding debacle by Congress and deciding that's even more of a reason to sit this one out.
According to Biriniyi Associates, the Dow is down 0.2 percent on average following a rally of 6 percent or more. The market has closed up just 20 percent of the time the day after a gain of that magnitude.
Against those odds, FM trader Guy Adami noted on this morning's call that a reversal higher today would be extremely bullish.
Got something to say? Send us an e-mail at firstname.lastname@example.org and your comment might be posted on the Rapid Recap! If you'd prefer to make a comment but not have it published on our website send your message to email@example.com.