Sorry for the lack of posts today. I attended a credit derivatives luncheon sponsored by Bloomberg. For the most part, it was very esoteric stuff, but the one thing that was noteworthy was the most of the panelists felt that the worst of the subprime debacle was behind us.
The indexes finished higher on the day, for a 2nd straight day. Despite the positive action, bearish options players were out in full force. The CBOE ran above 1.0 for a record 17th consecutive session. Unbelievable. The ISEE was also quite subdued, closing at 102.
Small caps really led the way today, with the RUT +1.0%. Big caps lagged, and the Nasdaq COMP rose only +0.3%. Among the sector ETFs, materials shined (+1.9%), followed by utilities (+1.3%). Tech and energy lagged, with tech ending up roughly flat and the energy complex slightly lower on the session.
Oil prices weighed on the energy stocks, with crude falling for another day, and closing at $57.55. For its part, the 10-year was steady, closing at 4.54%.
I will try to post a sentiment roundup tomorrow. Suffice it to say, this week saw the put/call ratios move to new record levels. There is a lot of fear, as there always is when the market is probing for a bottom. I suspect we will look back at this time period as another good buying opportunity. The question is when to go 'all in'.