The fat moustached man finally got his day. Months lurking in dark alleys whispering sweet nothings. In public they wear their Sundays finest and speak about unemployment, deficits, Public Option. But we know who they are. Often when Im leaving the night club and hopping in the cab I hear them snickering in a smokey basement reeeeeeeeking of Drakkar Noir playing with their Ouija boards.
You know this guy every neighborhood has one. He is the snooty fucker who hangs out at dinner parties and talks about U6 numbers when a neighbor says he lost his job. He laments on how the Federal Reserve is going to soak up all the excess money supply out of the system. . When you ask him what he does he replies “I’m a consultant” aka (My wife works fulltime.I blow sell side analysts for 6 sheckels so I can keep up my coke habit)
Bob the Bear you know who he is. Bob the Bear finally got his day after months of getting his grotesque face rearranged today he came out looking sheen and happy(Obviously partaking in some fairy dust to celebrate). Today he will go home to his wife and kids like a MAN. Bob the Bear will tell his wife that Peter the Poolman is no more. Bob has got his mojo back.
Bob and all his “special friends” will eat shit soon enough(and I mean literally since they are “consultants and are not gainfully employed) my guess within next couple days.
Today Kunal00 sat back with his immense cash position of 45%. I pounded the table for over a week. “raise your stops, protect your balls, and raise cash”. $SPY showing some decent distribution over last 10 days. SO is today. Yes I took losses but I was ok with them as I am not fully invested. I made 2 very eggregious trade management errors today. #1 I bought loads of $trit yesterday at 13.50ish area. Today it hit 15.41 yet I sold none trying to squeeze out a booom while the market was tanking. Yes even I am prone to foolish and greedy behavior. #2 My second biggest position $best ramped up to 1.49 which finally put me in the black. Instead of following my rule of selling 1/2. I did nothing wanting to go for an account busting 5%+ day while everybody took a bath in their bullshit stocks. Im an idiot plain and simple. Oh well On too business. Soon enough maybe tomorrow or 2 days from now the market will be at a level that will sustain fresh buying interest.
Look at the chart of $spy everytime we violate the 20dma the downside selling is non-existant. If the bears are going to break this rally they need another big down day tomorrow. They need to kill the “buy the dip” mentality. If there is a weak low volume bounce they need to break it with a higher volume distribution day to follow it. Break us down through that 50dma.
But let me tell you this. Todays action says that the market is expecting a terrible jobs report. By the time the report actually comes out the market has already priced in the news.
My plan on weakness is to play for an oversold bounce. If the volume is weak on the bounce then I know the distribution was real and I will go short somewhere between 105-106 SPY. Volume is strong I go guns blazing into every bullshit garbagio stock possible. Understood?Good!
Remember we are in an odd position as the Russell, Nasdaq, and S&P are sitting near support. The odds of a fullblow breakdown and it holding lessen if the market is oversold.