Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Market Tracker, 5-13

|Includes:DIA, IWM, Life Partners Holdings Inc (LPHI), ONEQ, SPXU, SPY, UPRO

      I knew that today would be a down day as soon as I read the headline this morning about the SEC expanding its probe to more and more banks. This is just another thing to add to the constantly growing list of negative fundamental catalysts:

  • Oil spill is hurting BP, along with the investigation
  • Volcano is hurting airlines
  • SEC is probing banks
  • Europe is laden with debt, and the bailout package will just add to that debt in the future
  • The emerging markets have planed off, with Brazil & China in down trends

To me that seems like more than enough to fuel a major sell off. The question is just when that will be. The market is getting more and more perilous by the day it seems. Today, although markets went down, the only U.S. index to have a lower low than yesterday was the S&P, and the volume was low. However, there was a major sell off at them end of the day, pushing the market from just about even for the day down a percent. For now, I'm still holding long positions, but I've tightened my stops. It looks like the huge gap up might have been a head fake, and that another, longer, bigger correction is in store. It really is up to how the market acts to close out this week. Life Partner holdings went up incrementally today, so I'm also keeping that position. Today hasn't destroyed my bullishness, but tomorrow could make or break this up segment.



Disclosure: Long LPHI, UPRO

Stocks: LPHI, UPRO, SPXU, DIA, SPY, IWM, ONEQ