Back in the glory days of Wall Street we had guys walking the floor of the Big Board taking customer orders. We had $2 brokers and specialists, they used phones and this archaic writing instrument called a pencil. The #2 Ticonderoga was always my personal favorite. The only kind of flash trading we had, was when a guy had too many martini’s at Harry’s at Hanover over lunch and dropped his pants for a laugh.
We also had some things that were kept private, secret, guarded. Things like CPI, PPI and Retail sales data. These data points were announced at a certain time every month and no one until 8:30 knew the deal. Yes, that stood for the unemployment number too.
Not anymore, if we think the number is good (happened this week), the President and the Vice President just bark it out in chest pounding fashion. That happened this Wednesday and the market exploded higher on Thursday. I blogged and opined on Stocktwits TV on Thursday at noon that we had probably seen our rally. Why? The horse was let out of the barn.
You see the market is always right, it’s a beautiful genius. The elitists thought that this crap ass number, bloated with temporary government jobs would impress us.
We were getting hammered before the number printed anyway, as fears that Hungary was imploding and rumors that SocGen had bad derivatives buried somewhere. So again, it was a perfect storm for the bears. I knew at noon we would get crushed into the close and mentioned it repeatedly on my Chatroom. There wasn’t a bid in sight for most of the day and no one would take risk into the weekend.
The transports had their worst day in a while (Elliot Wavers are doing jello shots), oil went down 4% yesterday and copper is down 23% from April highs. The Euro is at a four year low and it broke and closed below $1.20, a key level. The Euro/Yen is at levels not seen since 2001. It was a tough week to say the least.
Where do we go from here? Well, every fiber of this rally has been resting on the hope that jobs would improve. Newsflash..ain’t happening now. Unless of course you want to wait for all the temporary oil skimmer jobs next month. Should be a doozy.
How about that bottom in housing? I recommended a short on Thursdays Stocktwits hour and the XHB broke 5% today and is hanging on the 200 day moving average. I said it is one the greatest shorts I have ever seen and I stand by that remark as I believe a double dip in housing is obvious, just a matter of time. I have time. I also recommended shorts in PCLN, CF and FSLR Thursday which resulted in gains yesterday of $6, $5 and $3.
Stop on by my Premium Site and see how we will be approaching the market next week. The Sunday subscriber video gets published tomorrow. It will be an action packed week for sure. Hope you all survived and have a relaxing weekend. It was a brutal week.
Enjoy the links
When Soros played hardball.
The Acorn of jobs.
Steve Wynn on Vegas and Washington.
Worst jobs day since 1998.
Gore loot to split. Go Tipper!!
CNBC tanking.
Our road the Athens and the Europeanization of America.
New film from my favorite dictator groupie.
The Boxer Boogy. Later “Senator”
Mostlyweakness but some strength, I think tech can play here.
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