Is anybody buying UYG at these levels? what price? how many shares?
I bought today at 2.83. The last time financials were down 17% in a day was on Dec 1...and they rallied more than 30% higher in the next 4 trading days (60% for UYG). None of these banks are going to fail in the next 30 days...this market will recover and wait for Obama's administration to announce a plan. The Govt will likely buy troubled assets without diluting investors...as costly as that will be to the taxpayers.
Tomorrow we have a reaction to IBM posting an upbeat 2009 forecast indicating a recovery. The market has been looking for something to rally on and you can bet this is it. Additionally, US Bancorp is reporting tomorrow morning and was already beaten down severely today...very likely to rise and bring the sector up.
If you think JPM is going to stay at 18, youre missing the boat. Its the best of financial stocks and is still well capitalized. No reason for it to be at 18 given its earnings projections.