“Just keep swimming”-Nemo
The bears released a can of whoopass on the market yesterday, but in the big picture it’s still just a pullback. The $SPX is now down about 80 handles from the top. Is that enough? Do we need a 100 handles? Maybe. I like the 1628 level for some support, but if that doesn’t hold then maybe we tag 1615 short term.
Gold, housing, and emerging markets say there will be no taper for now. Stocks like $TSLA and $NFLX could not care less if “The Bernank” goes from 80B to 70B a month in bond purchases.
The Dow Jones $DJIA still looks miserable and yesterday the other indices followed this index lower.It is oversold however and mat get a technical bounce real soon.
The markets are up against a lot right now. Sub 2% economic growth with ripping crude prices is never a good thing. We have more natural gas than oxygen, so hopefully when these skirmishes break out five years from now, oil will be an after thought. For now it matters.
Its not just our markets that are petrified of tapering. See emerging markets. The Rupee is collapsing too.
Europe finally had a dose of reality the last coupe of days as $EWG, $EWI, $EWP and $EWQ may have topped last week.
I keep harping on the financials, but they MUST stop going down, it seems the financials are in a mini free fall with zero bids anywhere. It seems that there are more $JPM traders in custody right now than at Guantanamo, and the stock looks horrible.
We’ve all seen this move before so trade lighter and place stops. Then press when it turns.
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