Becareful another bulls trap

4/21/08

Bank of England bail out their banks on garbage(Mortgage-back securities). It only means to me that Credit Crunch is not behind us. In fact, the worst has not yet to come. This morning, Bank of America profit has wiped out almost 80% and National City bank need raised $7 billion. I expect lots of these actions are going to take place for the rest of this year. Banks are out of capital they need to stay above water. Soon enough, we would hear Citigroup would raise another round of $$ . Technically, banking sector index has been bearish downtrend and have not break the downtrend pattern yet even major indexes were rising recent days. Watch out folks, this maybe a bull trap that market going to teach us a lesson. Dow is really breaking the initial range resistance 12750-12800 but need few more days to see. But S&P has not yet break above the range resistance zone yet. Let see how today (monday) closing.