The Wrap 5/24/10

{+++} The market was a frustrating beast today until the bears took total control, evidenced by the complete breakdown of the financials, the only sector, by the way, that is my tell for the market. I was very agnostic on the market last night, basically neutral because Sunday’s are Sunday’s and I don’t trust the futures.

The S&P traded in a mind numbing range until it imploded in the last half hour, eerily reminiscent of the deleveraging of 2008-09. The sellers wait for the close and hit bids. Why? Because they pray and hope for a rally, and when it doesn’t come they sell. The dollar rebounded over 1% after Friday’s pullback and the fear trade was put back on. AAPL was up, and the bears that continue to try and beat on the name are always proven wrong.

What alarmed me the most was the break of XLF today, I tweeted it and mentioned it on the chat room. A key level (for today) was broken and the group got weaker and sold the market down. Always watch he financials, they are always a great tell.

Could we have a turnaround Tuesday tomorrow? We could, and I don’t rule it out, but there does seem to be fear and uncertainty in the world, so sellers could be abundant,

When we had our economic and financial issues during the crash of 2008, early 2009 it was because of  a bubble in housing and a subprime disaster. Now it’s a global issue, and it’s not just Europe. Europe extends to the U.S, China and Japan. I worry. I truly do.

Does that mean we can’t rally up 300 points tomorrow? we are in a headline market and in a very emotional and technical market. Fundamentals are meaningless, and earnings mean nothing, the sooner you grasp that concept the better off you will be, it’s a street fight with the bulls and bears, and if you can see the future a nanosecond before the next guy you win.

Do I think we rally up 300 points? Probably not. Stocks don’t rollover like they did today if the market wants to go higher. The bulls had a golden opportunity today to continue Friday’s rally–they couldn’t. They may get a second chance tomorrow, we’ll see what they do with it.


Previous Post
The Week Ahead 5/24/10
Next Post
“Acroplolis” Now

Recent Articles