Market Talk

It was a wild week. Monday/Tuesday started slow but Wednesday we gapped up hard thanks to the "bad bank" news. We became bullish on Wednesday and rode some nice longs (A). Then on Thursday the market gave it all back and we fought the trend all day churning our wheels (B). After Wednesday's bullish price-action we thought, like idiots in retrospect, that the dip was to be bought. Wrong! However, on Friday we got our mojo back and stayed short all day (C) with the help of our leveraged ETF favorites and a few stocks. Looking at the SPY we can safely say that it would be very surprising if this market does not at least test the lows of 80.5 (resistance now clear at 88). Ideally we base over support and then break-down hard for a final wash-out. Too cute? Possibly. But we can hope.

A side note: the way this "bad bank" news has been dealt is absurd. Is CNBC the televised National Enquirer of finance?