The Wrap 8/22/11



There is your five minute chart of the S&P today. All the action was in the first five minutes. We sold off hard, held the opening level tried another bounce, and then went lower near the close. Bottom line? A fairly choppy day, unless you were long over the weekend and sold the opening.

Nor bullish action by any stretch. The inspiration and catalyst for the bears near the end of the day was news that Lloyd Blankfein, CEO of Goldman Sachs, had hired a criminal defense attorney. This was reported by Reuters and so far, this report has not been denied by the company. We will see what tomorrow brings. Goldman is the fourth largest holding in the XLF. This is an important factoid to be aware of. If the news is bad, it can pull that sector down further which in turn can pull the market down further.

CNX, GLBC, and COF triggered on the short side. SOHU is still on the list, but hasn’t triggered yet. I still think 1100 is next up for the S&P and maybe lower. Of course a rally can emerge at any time.

I have added some new short set ups tonight, so check the P&L page.






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