The market went down 5% two weeks ago and up 5% last week. Did anything changed during last two weeks? not really. Basically, the market is trading around by traders and they are very comfortable with a range of 1000-1100 for S&P 500.
I believe the tight credit market is good for large blue chip companies because the barriers for new entries have been set up unreasonably high. Especially high tech companies. I already owned INTC and interested to purchase some CSCO around $21. The commodity companies, especially base metal companies are in trouble in short term because of the fiscal tightening. I am neutral on energy companies.
The improvement in loan quality probably bodes well for commercial and retail banking but not very positive for investment banking. I like Bank of America around $14 and CITI.
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