I was a happy little clam until about 11AM. Things were going swimmingly until the great momentum trader in the sky decided to hit thin bids. Silly stocks that don’t have any business trading where they are got hit. Some of my faves like $KNDI and $CARA folded like cheap suits. I bought $ADEP, it saw me coming, than went down faster than free beer. $IBB folded $5 from top to bottom. Risk came off and stocks went down.
$GM is getting investigated by the government (like they should investigate anybody), Fannie ($FNMA) and Freddie ($FMCC) are collapsing which is starting to scare the bulls in housing stocks. $PLUG got crushed after Citron came out with a 50 cent target. The analyst made good points, and I wouldn’t bet against him. I read the report. These things happen.
China and copper are screwing the pooch again and folks are starting to worry about inflation again.
For a moment today I thought seriously about moving money to the safety of Bitcoins or the Russian ruble, but decided to stay with stocks.
The support I was watching today was the 10 day simple moving average (1865.22) and the 8 day exponential moving average (1867.60). As you can see they both held…..for now.
Dips get bought until that whole thing stops working. Good luck tomorrow and long live the oligarchs.
Grab a subscription here.