Monday, February 26, 2007

Broker Index (XBD) Closes Below Its 50 Day

The XBD closed below its 50 day moving average today. On Friday the brokers were weak and throughout the day today we saw more of that selling. We had a higher open in the market this morning so naturally brokers opened higher too, but within minutes the brokers all went negative. Some of the weak stocks in this group were: Morgan Stanley (MS) down 3.03%, MER down 2.67% and AMTD down 2.06%.


brd said...

XLF the financials spdr has also been under pressure lately. It is a broader index, but contains many of the same stocks (MS, LEH, MER, GS, etc). Unlike XBD, however, it did find support at the 50dma today.

I think I'm about to cash out my AGE and GS shares.

Sandro said...

Yes, brokers are in trouble related to collapse of credit default swaps on MBS. Of course they are not so in trouble as, say, NFI or NEW.

Expect more down.


This site may include market analysis. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Trading and investing involves high levels of risk. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.
Technorati Profile Finance Blogs - Blog Top Sites