Is It Dead?

Wow!  What a Bloody day on Wall Street for the Bulls!  I was wrong yesterday in thinking that Goldman would hold up the market today, and that we would sell off to 1115 on Friday.  I hope that many of you were already short and profited from it even though it came a day early.  I know I’m a happy camper, as I was already short!

Today’s volume was one of the largest I’ve seen in many months, with 338 Million Shares Traded on the SPY.  Big Volume = Big Down Day!  This is going to be an exciting year… if you’re a Bear that is?

Looking at tomorrow, we have some good support a 111.40, and 111.20 SPY.  If we gap down, I’d expect those levels to hold, and the rest of the day should float higher… although not a whole lot higher.  No major news or earnings are being reported tomorrow, so that sets up a “Pause” day… (flat to slightly up).

Moving on…

Isn’t it interesting how Scott Brown, a Republican, wins the Senate seat, and suddenly Obama decides to come out on TV and state how he’s now going to be tough on the Banks?  Coincidence?  I think not… He did it because he’s now worried about his popularity… which is now shrinking!  He has too act tough on the banks so people won’t switch over to the Republic side when more elections come up.

He already lost a key Democratic seat when Ted Kennedy died, and was replaced with a Republican.  Now his health care bill (which is garbage by the way) is in jeopardy of not going through.  Then there is the economy, and this fake wall street rally… which isn’t working or creating any new jobs!  Duh Obama!  I could have told you that!

Let’s not forget about Ben Bernanke, as the Senate has yet to re-appoint him.  I think they won’t, and that will be another “lack of confidence” of a recovering economy.  Which will probably start another sell off in the market?  So, looking forward (and I’ll do more a in-depth post this weekend), I’m expecting a few days of a flat to slightly up market until Obama has his “State of the Union” speech next Wednesday.

If you are still short, and didn’t close out today, I’d close them out tomorrow on any gap down and stay in cash over the weekend.  That’s what I’m doing, as any move up next week will be limited and not worth risking… in my humble opinion at least.

Red