If you are a player in the market and if you are a fan of the Walking Dead program, you have to wonder if this market has “turned” (now your a full fledged zombie if bitten) OR maybe you just had a close call and you’re fine.
Either way, the zombies are everywhere and you need to be careful. Defense is key.
Stocks drifted around, but remained in negative territory for most of the session, as traders pointed to uncertainty about the strength of Friday’s employment number and what it will mean for the path of U.S. interest rates.
Obviously the market has “turned”, after all we’ve had a 10% correction, BUT are we going to rally? Are we oversold enough? Can we go down another 5%?
These are things I ponder as I look at a billion charts a day. All the charts are broken, BUT nothing goes straight down or straight up. We trade the ranges.
Right now I see resistance at the 1945-1950 level on SPX. If the market breaks above that level then maybe a bigger rally is in store. Shorts get covered.
I remain bearish, while I respect the possibility of a Friday rally.
Fun Note
As the coal stocks continue to gasp for air, I draw your attention to BTU- Peabody Energy. This was a solid coal play until the EPA and Obama decided to make them extinct. The stock was at a buck and half, did a 1:15 reverse split to 14.50 today and dropped 14%. Ive traded for 30 years and reverse splits are a disaster. May be a short soon, So sad how the investment bankers try to put lipstick on a pig and screw the average investor. So sad.
I’m sipping a Jameson as I ponder greater things.
See you in the morning.
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