The Wrap 12/21


It’s a really tough call on this market right now. Volume isn’t there and the machines can do pretty much whatever they want. It’s very easy to push around an illiquid market. Most traders have put it in the books for the year. The really bad news seems to have subsided, at least until the next surprise, but barring a disaster the market may want to walk things higher for a little bit longer. We’ll see.

The ECB threw a 1/2 trillion dollar olive branch to about 353 European banks this morning to encourage an epic carry trade. Meaning we will loan you (the banks) money at 1% so please go buy some eurobonds yielding 5% and make the difference all day long. We did the same thing here if you remember and it did zilch for our markets.  The euro went lower on this news today, not higher. When “good” news get sold, that’s not bullish. Many feel the banks will just hold the cash and not buy eurobonds at all. To soon to tell.

Tech was hit hard today with names like IBM, AMZN, ACN, ORCL, FFIV and VMW taking a hit. The DOW would have been higher if not for IBM.

Weird crosscurrents today as utilities broke out to year highs and consumer staples are right on the verge of breaking out to year highs. Both are considered very defensive sectors.

Crude and energy rallied back as they guesstimated incorrectly on the draw down number. The financials were flat all day until the end of the day when they caught a bid.

There aren’t any new names tonight guys. I’m keeping an eye on what we have and may do some day trades on the chat room tomorrow. Have a great night and please check the P&L.

I wont be trading on Friday, but I will be around all day tomorrow, so stop by the chat room and say hi. I am getting the sandbags and the new foxhole ready for next year and I am looking at many charts. I also may tweak some things in the new year that I think you will all like. Work in progress.

Any and all of your comments are always welcome.




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