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US Financial Stocks Catching Up To Credit Weakness

Submitted by Tyler Durden on 02/14/2012 11:27 -0400

We noted last week that credit spreads (particularly for financials in Europe and the US) were deteriorating rapidly. In Europe we saw financial stocks hold and then drop to catch up and once again today we see them holding up as credit drops further. In the US, from yesterday's gap up open exuberance, the major financials are significantly underperforming as they catch up to the ugly reality of the credit markets. Morgan Stanley and Citi are down 6% from yesterday's opening level, BofA and Goldman are down 3.5-4% and Wells Fargo is tracking the financial ETF (XLF) down around 2%. Even JPMorgan is down 1.4%. Several of these names are retesting their 200DMAs from above and volumes are picking up.

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Tue, 02/14/2012 - 11:29 | 2157375 pods

Blasphemy I say. Those cannot go DOWN!

pods

Tue, 02/14/2012 - 11:31 | 2157381 Clueless Economist

Don't worry Britney Houstons's tragic death in that hotel bathtub is BULLISH for financial stocks

Tue, 02/14/2012 - 11:38 | 2157402 redpill

Is the bid/ask spread on gold spot larger than normal this AM? I don't remember it being a full $2

Tue, 02/14/2012 - 11:49 | 2157452 Miss Expectations

Clueless, I think that carbon monoxide could have been a factor, especially in light of Whitney's daughter having "fallen asleep" in the bathtub the night before. Check out the number of stories on carbon monoxide hotel evacuations:

http://www.bing.com/search?q=carbon+monoxide+hotel+evacuation&qs=HS&form...

Tue, 02/14/2012 - 12:14 | 2157446 MillionDollarBonus_

Tue, 02/14/2012 - 12:49 | 2157752 midtowng

The pattern in 2007-2008 was:

1) credit markets starting with junk

2) bank stocks

3) general economy

4) general stock market

Tue, 02/14/2012 - 11:31 | 2157378 fonzannoon

Today is another example of the market looking like it was about to fall off a cliff but then does not.

Tue, 02/14/2012 - 11:32 | 2157384 WonderDawg

The day is young.

Come on, Citi! TANK you sons of bitchez!

Tue, 02/14/2012 - 11:32 | 2157385 true brain

Everything is coming together in common sensical way: plunge in Dry Baltic Index, plunge in % population employed US, plunge in Fed Tax collection, plunge in retail sales, plunge in saving rate, maxing out in consumer credit, China hard landing.

Enough said: bomb shelter here I come.

Tue, 02/14/2012 - 11:33 | 2157387 LawsofPhysics

They will print, and you will buy the fucking dip. Same as it ever was.

Tue, 02/14/2012 - 11:40 | 2157409 Conman

BTFD 4 LIFE will be my next tattoo.

Tue, 02/14/2012 - 14:24 | 2158192 spekulatn

Don't forget the "Bitchez."

BTFD 4 LIFE BITCHEZ

Tue, 02/14/2012 - 13:21 | 2157931 true brain

Just before they print, i'll cash out my shorts and convert into gold; just in time for hyperinflation. Bitching baby, bring it on.

Tue, 02/14/2012 - 11:34 | 2157389 chunga

Tue, 02/14/2012 - 11:34 | 2157391 Conman

Nevermind that, look at AAPL. Ipad 3, iphone 9, dividends, stock buyback, facebook, any of this working?

Tue, 02/14/2012 - 11:34 | 2157392 Cognitive Dissonance

"In the US, from yesterday's gap up open exuberance, the major financials are significantly underperforming as they catch up to the ugly reality of the credit markets."

Is this a new ugly or just more of the old ugly? Just askin' cus.......well........cus it's all beginning to sound like a very very broken record.

Tue, 02/14/2012 - 11:44 | 2157425 pods

This is Janet Napolitano ugly.

U.G.L.Y. you ain't got no alibi, you ugly!

Tue, 02/14/2012 - 12:00 | 2157503 Cognitive Dissonance

I'll see your Janet Napolitano and raise you a Janet Reno.

http://en.wikipedia.org/wiki/Janet_Reno

Tue, 02/14/2012 - 12:03 | 2157521 pods

I think they were both rejected pledges of Omega Mu.

Tue, 02/14/2012 - 11:35 | 2157396 Dr. Engali