Typically, holiday weeks see light volume and benign trading action. Well that isn't the case this week. Yesterday was one of the most volatile days I've ever seen. The high oil prices are weighing things down right now. Emerging markets have continued their slide as well. Things will keep cycling on themselves (meaning our market goes down, which makes others go down and so on) until something shifts.
We've seen some hints of buying in the financial names. Etrade (ETFC) is up about 9% this morning, but it is hard to trust that it will hold. The bigger names, including Citigroup (C) have bounced up but then back down. It appears there are some buyers for these names, but most investors are still nervous about them. As I've said before, we've already seen most of the bad news from banks in the short term. This is why I've been thinking we're due for a year end rally. But there are plenty of things that could derail that plan, so it is important to stay flexible.