Auto Hearings are scaring the hell out of the markets...
This morning's rally in gold stocks was an opp to take
some profits off into strength, because with the fear
the auto hearings are creating, we're going to be able
to buy them back once again -- cheaper.
Again, this has become a day trading environment due to
the extreme day to day emotional swings.
The gold rally was generated by institutional money coming
into gold, with big block buying that started pre-market,
and that's good news.
But as the market started to rollover into the live
broadcast of the Auto hearings, shorts just stepped in
large, and took charge... and are now running stops
on the little guy.
And it's not just gold, it's energy and the broad market.
For example, I'm buying an initial entry into DPTR today
with some "flip" money from gold, and I'm targeting a
$5 to $4.50 entry.
What I'm seeing is a tape that's clear as day...
The sells are 100, 300, and odd lot sales of 208, 304 etc.
They are just running stops on the small fry, then a
larger block like one at 17,300 that just crossed, will come
in on the buy side, and then the small share lots continue
to get run. The up tick buys are 1,000-17,000 share lots and
the down tick sells are all small 100-500 share lots.
The Pro's are relentless on shorting and running stops
into any weakness in this market, and if you were watching
the hearings with the Auto Makers, you could see the tape
rollover as GM's Rick Wagoner couldn't handle the heat.
No wonder the markets are tanking.
It only took me 20 minutes today to make up my mind
on Rick Wagoner... give him da' boot!
Rick Wagoner may be GM's CEO, but one thing he is not...
is a salesman.
What a weak stick...
Ford's Alan Mulally is standing out as the strongest
of the three, with Chrysler's Nardeli in the middle,
and GM's Wagoner a distant third.
If we don't get a bailout, the markets are going to tank
and tank big. And the likely bankruptcy of all three will
cap any upside to this market until resolved.
I think we need to do a bailout and I don't think we can
afford not to.
It's simply a matter of jobs.
The supply chain manufacturers could not withstand the shock
of one, or two, let alone all three of the BIG 3 going under.
And the domino effect through related industries is just
to large to risk a non-bailout in "this" economy.
If we were not in the midst of an economic crisis, it would
be different.
Stings do need to be attached, the unions must renegotiate
more competitive contracts, costs need to be slashed,
executive compensation needs restrictions, as well as
commitments to keep US plants open...because what good
comes to the US taxpayer to have plants closed in Detroit
and Ft. Wayne, only to switch production to Mexico City,
or Ottawa?
Keep some powder dry... could be some good buying opps
into today's close given the shakeout we're already seeing.
There's a very interesting trade developing on whether
the Big 3 get some money, or not.
If they the money... buying here into the abyss will
be a great trade.
And I think they get the money.
...get those stink bid fishing lines out there.
SOTB |
