The market rallied off the open today after the announcement of the Citibank news of charges against earnings. The rally is based on the financial group of the S&P 500 with the investment banks leading the way, GS, LEH, MER, BSC. Apple made a new 52 week high of $157.41.
We see the market mean reversing based on the low volatility of the trading since the Fed's rate cut.
The homebuilders rallied today on the open with most up in price. However, who are the buyers of the homes being built?....the fundamentals of the homebuilders’ business cycle is not in a growth mode and our models tell us the rally is a short covering move and not an indicator of a shift in the fundamentals.
Monday, October 1, 2007
GOIH Capital Markets: Market Rally---Dow up 200 pts.
