Futures are getting wrecked all over the place this morning.. Part of the reason is the epic failure of the super duper committee, but Europe continues to weigh like a wet blanket. Naturally talk of yet another U.S. downgrade will grow roots this week, and the Vegas lines will be open on when France will get its downgrade. Probably within two to three weeks is my guess. What a staggering failure of our political process. If you think business wasn’t spending, watch what happens now. There isn’t a doubt in my mind that we will double dip. When incompetents and Pollyanna’s make the calls for us, we don’t have a shot.
Last week commodity funds reduced their commodity exposure the most in seven weeks. Maybe that’s a contrarian play, but I don’t see any positive catalyst near term that would make me want to catch that knife.
This has been a harrowing and frustrating month, but I have held short the financials $XLF and see nothing near term that can reverse that toxic shipwreck. I see the sector retesting the August lows at the very least.
$AMZN traded horribly on Friday and the stock looks lower. $GOOG started to break support on Friday and may want to test that 560-570 level.
Gold $GLD is getting sold not bought, and even though fear rules the roost, cash is running to treasuries $TLT
It’s a good time to take a breath and watch. It’s a three day week and anything could happen. I am in day trade mode and trust nothing. The armor is cracking.
Good luck this week.
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