Slow Motion Bleed Out

“The essence of being a professional is being able to deliver when you don’t feel like it” — John Hurt

Days, weeks and months go by and nothing in Europe gets resolved. They plan to make plans and calendar more summit meetings, but those meetings never find resolution. If you like watching ineptitude in motion you have a ringside seat.

Gold $GLD was crushed yesterday and crude $USO was pounded as the euro got sold off and the dollar ramped higher. The chart of the dollar is one of the most bullish I’ve seen. It may rest a bit before another thrust higher, as it at some big resistance. But of if it does rip higher, having some shorts on will be a good idea. The S&P $SPY has pulled back about fifty handles from its rendezvous with the 200 day moving average, so we could muster a rally, duration of said rally though is the big question. Futures are currently higher.

Bond vigilantes have left the building,or  maybe they just don’t exist anymore. The 10 year treasury is bid under 1.90% this morning.

Zynga (lol) prices their IPO after the close today and the new cool thing to do by the analyst community is to put a sell rating on the name “before” it even goes public.

$AMZN (poster child for ugliest chart lately) finally caught a bounce yesterday after being beaten like a baby seal since October. Continuation will be key for this one. $AAPL looks dreckish and is now trading below its 20 and 50 day moving average. Apple reports earnings in a month. I doubt it will stay down for long, but it may need to tag 365 again first.

On a  relative basis, the financials $XLF acted better yesterday, but I’m not at all bullish on the sector.

Until things change, I will be shorting rallies.

I’m short Euro and Europe. Watch Italy.

Good luck



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