Chop In the Box

S&P cash
S&P cash

If you’re like me you are sick of the incessant chop, indecision and rudderless behavior of this tape. This is definitely the new normal for now until either gores bankrupt or finds a howitzer like band aid for their ills. The world is now waiting for the ECB to save their bacon but Merkel is saying, “not on my watch.” In the meantime, we are trapped in the “box” above until good things or bad things become more evident.

Options expire today, so things should be a hoot as more headlines will certainly come out of the Eurozone. Future are higher this morning after the drubbing we took yesterday. There is never follow through in the morning anymore, so you may as well do the opposite of the close.

I witnessed many cracks in the market’s armor yesterday. The fertilizer space was smashed lower, the big four like $MOS, $CF, $POT and $CF were spanked with conviction.

Crude tagged the 103 levels and pulled back. A blow off top or just a natural retracement after eclipsing the all important psychological number at 100? Crude will probably trade 90-105 for a while until iT figures itself out. The global recession argues lower prices, but possible mid east friction argues significantly higher prices. I am in the second camp and I am still long crude. Crude has never traded on real demand anyway. I was stopped on some oil patch names yesterday but will reenter at better prices.

$AAPL and $AMZN still trade fairly poorly, the latter trades very poorly and it is trying to find support at its 200 day moving average which is around 200 bucks. If that doesn’t hold then 180-190 is next.

The financials are a train wreck, $XLF  broke its 50 day moving average yesterday on good volume and $BAC broke 6 bucks yesterday  5 may be next.

Good luck today.

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