Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Flagstar Bancorp (NYSE: FBC) plunged 15% to start the day and then climbed into positive territory in a steady climb throughout the day.

So what: This looks like a dead cat bounce after Flagstar plunged twice already this week. Today the market is absorbing a downgrade from FBR Capital and contemplating exactly when shares may be done plummeting.

Now what: I’m awfully leery of a move like this, especially after a stock plunged so far during the week. Catching a falling knife is a dangerous proposition, and I’m not convinced the stock has bottomed out. For now I’m going to watch from the sidelines and let traders try to pick a bottom, if one is to be found.

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