Euro Continues to Make a Splash: Dave's Daily

XLF: Many components here especially weak and there are doubts about European exposure and political pressure within the U.S. to bar any bailouts overseas.

KBE, MS, C, GS, JPM: The banksters all look to be in precarious positions and their troubles could lie in Europe debt where they might get stiffed.

V: What's the deal with Visa? The new financial reform package puts a burden on credit card companies to limit interest rate charges to limits set state-by-state. This will mean lower profits from many states and some accounting issues as well.

 

XLB: Demand for materials is critical to economic growth. No demand then there's little production from factories and higher unemployment.

XLY: Most retailers reported earnings that beat estimates although outlooks were disappointing from many including WMT today.

 

IYR: REITs suffered "finally" with the rest of the market. IYR rests now on important support. A failure to hold will cause a test of $45.

 

IYT: Transports are just grinding within the trading range.

SHY, IEF, TLT, TIP: Bonds were the safe place to be especially on short maturities and in inflation protected issues.

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