gooood morning. we are looking flat at the open. USO, UCO aka OIL are up a tad. Seems that oil has bottomed as there is a divergence right now between the market and oil (interesting). GDP numbers were lowered but doesnt seem to be effecting the market. Seems everybody has already resigned themselves to the fact that the economy is cooked. RIMM is dropping down a few bucks which might weigh on the tech sector but the finnies are up on this so called regulation bill. Today’s focus will be energy and finnies for now
The indexes are below the 200dma which is bearish…till further notice the rallies will be faded and heavy cash position is a must. 70-80% cash is ideal right now. In this market remember to use smaller position sizes and keep your losses small. Income trading is the key right now..pay those bills.
The key for the market is how we handle bad news…once we start shrugging it off then a meaningful bottom can start being put in place. See ya in the BF