Wow, just when we're trying to get bullish, they take away the punch bowl.
They almost had us yesterday, all they had to do was get that S&P over 1,359 and we were planning to join in with the crowd - but only as long as that line held. That's why we have lines, right folks? They help us to be DISCIPLINED so we don't let our "feelings" get in the way of our trading. We are NOT technical traders but you HAVE to respect the technicals simply because so many people are technical traders.
It's the same reason we force ourselves to watch CNBC - they move the markets. I wish they didn't as I can feel my brain cells dying as they speak but you can watch Bloomberg all day long and not one thing they say affects a stock but just last night, CNBC released the TBoone, who spouted off more of his insufferable BS about oil going to $125 and gave us another fantastic shorting opportunity betting against him at $102 (now $101.24). So how can we not watch CNBC - they are a counter-party driving machine!
But this is not about TBoone, or the elitist propaganda network - this is about tecnicals, about our Big Chart and our 10% lines and about the Dow, the S&P 500 and the Russell 2000, who all face critical tests today. The S&P is, of course, our most important index and not even AAPL could get them over our 10% line (1,359) on yesterday's silly spike in the morning. That led to (finally) a pullback in the markets and a nice test this morning of 12,749 on the Dow and 813 on the Russell. Holding those levels will be bullish but we already bet they'll fail in yesterday's Member Chat as we added a couple of aggressive short hedges to our already too bearish (maybe) collection, 10 minutes after I was able to glance over the Fed Minutes (2:10):Email This Post Facebook Twitter LinkedIn del.icio.us Digg
Additional disclosure: Positions as indicated but subject to change.