My Market Take

Will we rip, dip, have a Troika Tuesday or a Turnaround Tuesday?

The hilarity has returned in full force as we hang on every lie, whisper and unsourced comment from the gang across the pond.  The market bounced around today on more “yes they did oh no they di’int?” nonsense.  The new socialist party were big babies and threatened to hold their breath if they didn’t get there way this weekend and the folks at the neo- nazi party  burned drachma’s for Mother’s Day. It was a tough day and the market tanked.

Wonderkid Jamie (I’m just like everyone  else now) Dimon screwed the pooch last week with a big loss, and today he had some chick fall on her sword for him. Someone had to go. The loss is a rounding error in terms of financial impact and magnitude, but the media loves a good story. The fact is there is so much toxic shit out there we will probably never know the extent of it until it’s too late. But you already know that.

China eased reserve requirements, but that didn’t do diddly squat.

It’s option expiration week and “typically” that has been decent for the tape, even though weekly MACD’s are breaking down just about everywhere and the Russell 2000 is hanging on the neckline of a big ass head and shoulder pattern. Not all H&S patterns break, so therefore they don’t all validate and get crushed to pixie dust. But it does makes for great conversation on the cocktail party circuit. Kind of like that big head and shoulder pattern on the S&P a while back that ended up just ripping higher and squeezing shorts in the process.

$AAPL looks and feels bad right now. Bulls will want $550 to hold, bears will want that level to break. That’s what makes a market.

The financials $XLF are in the wood chipper again, thanks to $JPM and the daily chart looks broken for now.

Coal got hammered today and I guess you all know by now that we never ever use this black rock again, we will never use oil again or a hunk of steel for that matter. Soft commodities are getting hit, so I can only assume that none of us will ever eat again. At least that was the “chatter” on The Street today. The internet was a fad, so undoubtedly  all technology stocks will  be sold down to a drill bit. You will buy $AAPL again at 10.

All sarcasm aside ,this is what I wrote to subscribers last night and I do believe we are ready to go hard either way. The $SPX is about 80 handles off recent highs, so a strong case can be made for an oversold rally. The S&P lost support today by a couple of points and that isn’t a big deal yet. Problem is no one wants to be really long overnight (or short) for fear of leaning the wrong way and getting their eyelashes ripped out. Uncertainty is back and risk is off, for now.

I hope they take it down at the open so I can be a buyer, but whenever I ask for that small favor it never happens. Patient with cash here. The tape sucks.

$FB prices on Thursday and options expire on Friday. No shortage of excitement.

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