Financials lead way, WSJ says. Really?

Financials Drive Rally for Stocks, WSJ says in a headline, "amid increased confidence that the worst of the subprime-mortgage fallout is in the rearview mirror for major Wall Street firms," the paper gushes. .... Helloooo ... This is just one day's action. The big banks and brokerages appear to be in major declines, and have simply rebounded a bit in the past few days. Most experts seem to think we have not seen the worst of the subprime. Firms don't really seem to know what their exposure will be.

Strike that ...

... last Update post about more selling pressure coming today. Techs and foreign, especially Asia, were up 4%-7%. Smaller cap and value lagged in today's rally. This is simply more confirmation that large cap growth and foreign should be overweighted. One note though, Europe-based ETFs (I own EWO, earlier sold EWT) have not been that strong. This is worth watching, and could further narrow our style and sector selections.