The longs had a come to Jesus meeting this week with Mr. Bear. It was a perfect little storm for the bears as China slowed, Spain was downgraded, jobs kind of sucked , earthquakes hit Japan and the “Day of Friggin’ Rage” (fizzled actually), hit the front page. The rage thingy was put to bed, at least so far, as King Shithead threw monopoly money to his peeps. Cash is always the true opiate of the masses. The entire Mideast is a freaking snow globe of misery. I would rather be under a cardboard roof, under a bridge with a can of freaking beans than be anywhere that shit hole. We are so lucky, so stop bitching about all your nonsensical bullshit.
The market is probably going lower, I mean how high can cloud stocks go? You’re seeing the money run in names like FFIV and VMW. I am still agnostic and do my best to trade the nonsense that is presented to me on a daily basis, but it’s time for a rest. If we don’t get a rest and move higher, than the disembowelment that traders will get down the road will be epic. Bulls should be praying for a correction, not this bullshit little shot across the bow that we saw this week.
Frankly, I was a little surprised that the bulls took the hill today. Oil was on fire. OIH and XLE just exploded. Nice short squeeze there. Crude didn’t really budge.
In terms of the market’s near term price action, we took out that 1294 level today and it was followed by a counter trend bounce. That’s normal and sort of playbook. Resumption of downside would now not surprise me.