* Citigroup, the biggest U.S. bank by assets, slid the most since 2002 * Bank of America Corp., the second largest bank, had its biggest decline in four years. * The Standard & Poor's 500 Index lost 40.94, or 2.6 percent, to 1,508.44, erasing about $369 billion of market value from the benchmark for American equities. * "There is more downside in financials...'' Going down? Is the the real collapse, or an urgent chance to buy now??
The market ran up a lot since late August so its some profit taking here along with the fact that the Fed may not cut any more interest rates. I sold my shares of Goldman Sachs before the fed announcement yesterday. There are some good buys out there. I like Merrily Lynch around $55 a share and Citigroup at $38 looks amazing also especially if they can maintain 5% dividend.
I'm fascinated by markets, but not currently trading. It seems like 'smart traders' have learned to buy the corrections (every time), and so now we are due for a true bear market. Good luck.
Well for the last 10-20 years history has shown that buying on the dips has given people a nice return. James B. Stewart has a trading theory/formula where he sells his stocks or some of them when the market rallies 25% from its lows and buys them when they have fallen 10% from their highs its a way to take emotions of the trading. A correction is a fall of 10% in the market, a bear market is when the market falls 20%. I don't see a bear market coming and we almost had a correction in July/August we may try to retest those lows which is fine by me since I have a lot of money on the sideline hoping to buy back stocks at cheaper prices. Just picked up SNDK at 44 and am looking to buy maybe Merrill Lynch or Citigroup if they fall a little bit more.