Matt from Queens

The Dollar Index and the Financial Sector

As far as lowering borrowing costs are concerned, it's fairly evident that monetary policy by itself is not the answer to de-leveraging, therefore it's doubtful to see the Fed reduce rates further.

To paraphrase a wonderfully clear explanation by Paul McCulley from PIMCO, the paradox of de-leveraging is resulting in further asset-price declines, reinforcing the negative feedback loop. The root of all this is the decline in home prices, the asset upon which all this leveraging was built, so without a stabilization in home prices the de-leveraging process will continue.

Lowering borrowing costs further is not likely to mitigate this problem and therefore, it isn't likely to see another rate cut from the Fed.

Calling Today A Short-Term Bottom for Financials

What's the big rush to buy now? How about waiting to see if an increase in price is being accompanied by rising volume?

Financials and Retail: Not as Dire as They Seem

A Double Stochastic Overbought was indicated on Feb 27 and this market still has a ways to fall.