I don’t know how this could be good, but it follows news this week of foreclosure fraud on the part of B of A, Citi, and so many others. If this gets serious and huge banks do into receivership (not likely), then we should see banks lead the market south – again.
Timing? Who knows, but 11/2 is symbolic in many ways, so keep an ear out for anything disruptive on this front in the next few trading days. I still think we are in need of a cycle high in the markets at least, and we just finished our 8th week in a row of higher highs and higher lows (In China, 8 is a very important number, and is commonly referred to when markets get to such extremes – both down and up).
Have a good weekend and let’s see what, if anything, comes out of the G20.