The Wrap 12/12/11



We gapped down because Europe disappointed everyone this weekend. The 200 hundred day moving average (yellow line with all the pretty majenta arrows), could not be broken.. This area continues to be the big line in the sand for the gulls. More like a gauntlet.

Knowing this market, we will now gap up tomorrow morning, but who knows. I think the difference between today and last week, was that now we know Europe is dead again, at least for now. Last week, at least the bulls had some hope.

I added CF today as short. It is sitting on very important daily and weekly support. It broke that support and rallied back a bit today I have a very tight stop on this one. If the market it rolls over it will be a landslide candidate. If we gap up, the trade may stop out.

The rest of the names are just waffling around in this crazy tape. Still a lot of confusion and today the bears tried to take back the hill. A follow through day by the bears tomorrow would go a long way in changing bullish sentiment. This chop is brutal, so I hope they find a sustained direction soon. Up or down.

See you bright and early in the chat room.

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