That Was A Close One!

Financials were all set to sell off big time with fears of commercial real estate write offs potentially being worse than the residential CDO's were. Out of no where the CEO of Wells Fargo made an appearance on CNBC disclosing their quarterly profits 2 weeks early! Financials are now protruding a classic breakout to the upside. They should continue to show more strength as more financial institutions release their earnings. I wouldn't be suprised if more of these types of suprise anouncements surface pre-earnings for this quarter. All in all one might say we have begun the second bullish leg of a massive bear market rally. With financials however, don't forget the commercial real estate and swap exposure. Tread financials careful once the rally puckers out.

On a side note, shorting treasuries and the dollar are both plays that we can rely on long term. I picked up some TBT and some UDN as medium to long term holdings the other day.
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