Goldman Sachs banking note stating the US banks would need to raise an additional $65billion to offset losses.  However, the note comes at a time where the industry as a whole stated $120billion would be needed.  The additional funding Goldman had stated would push the total near the $120.  The selling had a hard time picking up steam, but price action was negative all day long.  We continue our low volume environment where price action has a bias to the downside.

Day #4 of our attempted rally ended without much fanfare.  Days 4-7 in an attempted rally where we need to see a follow-through day.  Occasionally, you will have a follow-through day occur after day #7 but these tend to be proned to fail and lead to mediocre uptrends.  We aren’t in the environment where we’ll see Monster Stock gains but I do believe we can grab notable gains.  Oil and Gas continue to be the place to be as oil and natural gas hover around their highs.

I continue to look for weakness in corn but strength in sugar and cotton as the inflation story picks up more steam.  Morgan Stanley earnings will be on the forefront of the News headlines this morning.  It should dominate news flow throughout the day.

Keep those losses small.

Market Speculator

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Last 5 posts by Market Speculator

• Quality Growth Stocks Lead the Way as Stocks Advance in Mixed Trade - June 2nd, 2009
• Re-Inflating the Bubble; Inflationary Pressue Lifting Stocks - June 1st, 2009
• Treasuries Begin Their Decline Striking Fear into the Stock Market - May 28th, 2009
• Follow on Twitter and Seeking Alpha - May 28th, 2009
• Sipping on a Cup of Coffee Deciphering Whether or Not The Stock Market is About to Make a Leg Down - May 11th, 2009