Despite the route today across most market sectors, the market is setting itself up for one hell of a violent countertrend rally. I strongly feel we will see 1000 in the S&P before we see a new low.
The financials are offering the trade of a lifetime here. Most of the banks will double and triple in less than two weeks. If they don't - the entire system will fail. I would put that opinion in the minority here.
Look for some significant regulation changes out of the SEC and some major support for the banks. All the BKX did today was satisfy its daily target on the charts. Don't get caught up in the hype that the S&P will be in the 600s soon. It won't.
The market still exhibited tenacious strength with the BKX down almost 20%. That's unprecedented and it speaks to the overall exhaustion of selling pressure and underlying support.
For tomorrow - hold that line.
9:40 - Buying FAS @ 8.30
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