Posted by: jhamon | August 11, 2009

What’s Behind BKX Weakness?

MysteryHedgie writes:

After an explosive run (+40% from 7/8 low to 8/7 high, see chart of BKX below) banks are leading today’s weakness, ostensibly due to an article in American Banker stating that the FASB is considering a proposal to expand the use of Mark-To-Market accounting, which could cause another wave of financial write-downs.  FASB meets Thursday;  expect markets tocontinue to trade defensively into the meeting.  One wonders whether the FASB is spiteful for not getting vacation like the rest of Washington…Revenge of the Accountants?  Not exactly what Dr. Obama is prescribing for a healing financial system.  

Watch the test of the 3332 low in SHASHR index tonight…..

BKS Weakness.  More To Follow?

BKS Weakness: More To Follow?


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