"I don't believe in the after life, although I am bringing a change of underwear." --Woody Allen
Bananas was one of the funniest movies I have ever seen and this market is bananas. Everyone thought we would rest today, just lie down like a ten year old English bulldog and just get through the day. Not today.
Mr. Market thrashed the faces off the shorts and put in an unbelievable move this week. The move off the overnight lows in the S&P futures on Sunday night (just five days ago) was awe inspiring to say the least. Jut unbelievable (and unbearable if you were leaning short). I'm sure that some hedge funds that were going the wrong way are freaked right now. Some traders were fired I'm sure, it happens.
Here's the deal, earnings are coming up, they should be good, but we need to prevent being too happy here. We are almost at the highs for the year in a week. Just sick. Just sick. Yes, I wrote that twice. I believe in the long side of this market, BUT, liquidity cuts both ways, as they may want to get more liquid on any bad news.
There will be bad news, there always is, and trees never grow to the sky without a pause for a drink of water.
I will be doing a post over the weekend that describes the mechanics of my Premium Site. I will answer all the many questions that I receive on a daily basis. I hope you did well this week and good trading.
If you would like to see my performance and are serious about trading this tape, please email email@example.com