{+++}Another day has passed and the S&P has dodged another bullet. The “imminent” breakdown as evidenced by the almighty head and shoulders pattern is out of danger, albeit barely, for now. The market chopped all day, was as boring as hell,l and there continued to be some light volume breakouts and subsequent fails on both the long and short side.
I still believe that this will be the week, at the very least, the end of next week, where we will know where the market will go until summer’s end. Goldman has passed, but we have much more to come. By the way, some people I think really read Meredith Whitney’s bullish call on Goldman incorrectly yesterday. Not you, my loyal readers, but the mainstream financial media. She was bullish “only” on Goldman, not the rest of the banks (bearish actually) and she was extremely bearish on the economy and the unemployment situation. I follow Whitney closely and she really helped me print some big loot last year with her out on a limb insight. She was bullish on Goldman only to the detriment of the economy, as her main theme was Goldman’s benefiting from huge problems with municipal, corporate and government debt, but then again, Goldman usually does prosper when Rome burns. It’s lonely on the bear perch when the idiots that surround you (mainstream financial media) are Pollyanna’s on a daily basis. She was right, they were all wrong. Just wanted to give you my take.
The market took Goldman up, but rested today in front of Intel’s earnings, which were lousy but I guess better than expected, the stock is up over a buck in after hours trade. Intel always does this, then fades to obscurity soon after. Now GOOG is on deck Thursday and BAC and C on Friday, so the market could run or fail, it happened last quarter and the quarter before that, so lets be nimble. If they want to buy the market so will we, our shorts are a little shaky for now and the market may get a bump higher at the open off of the Intel report, we will react accordingly.
KRE stopped today and they are slowly nipping us on the short side, but that’s OK because we will exploit what we need to over the coming days and weeks. We may see constant chop in the market until the meat of the earnings reports are over, so don’t get discouraged. I still strongly believe we will retest the lows at some point, in the meantime we’ll trade it like we see it. I may think we are going to hell in a hand basket on a macro basis but I will always trade it one day at a time. See you tomorrow.
P.S. I’m behind on some e-mails, haven’t forgotten anyone.
I’ve trimmed some of the watchlist names for now, although that can fill up quickly on a moments notice.
WATCHLIST (includes active positions and names that haven’t triggered yet)
ACTIVE:
IYR-WE’RE SHORT AT 30.50 STOP 32.50
RTH-WE’RE SHORT AT 75.50 STOP 77.50
WYE-WE’RE LONG AT 45.25
VMC-WE’RE SHORT AT 39.80 STOP 42
PENDING OR NEW (hasn’t triggered yet)
NKE-SHORT AT 50.16
CMA-SHORT AT 19.63 STOP 21
SNDA – SHORT AT 49.73 STOP 52