{+++}It was a wild day for sure and get used to it, because until the world resolves itself, we will have days where 200 to 400 point intraday swing moves will be fairly commonplace. In case your wondering I don’t think a bottom was put in today. Europe is still way to screwed and questions about financial regulation over there and here make people too nervous. I still think a powder keg will explode by way with a bank that is under-capitalized and has too much bad exposure over there. Do you think for a minute that if we didn’t know how bad things were at Lehman and Bear Stearns until days before they went bankrupt, that they know how bad things are at DB or some of the other banks? Banks like STD could just roll over and die.
Enough macro thinking. I adjusted the P&L and feel we all need a breather for a day. The market is bipolar right now and we are one headline away from a repeat of today. What’s interesting about the mood change in this market is that it no longer takes bad news well. Bad news, or even moderately bad news gets met with selling. Also, dips aren’t getting bought anymore, sure today was big dip buy, but it was strictly technical, not because investors want to organically own stocks. The why of it doesn’t matter anyway.
We held SPX 1040 at the open and endured hours along the 1050 level and then took off. Tomorrow will be a big day, so rest well.