Well said. This was the 2nd most active day in NYSE history. I wonder what percentage of the action was accountable to the 15 program trades, the two largest coming at day's end.
Today's price action tells me to take all of my short term TA and stick it where the sun don't shine, because the controllers of the purse will move this market at their whim, to suit there own agenda. The rally in the last 15 minutes is an incredibly blatant head fake in my opinion. It gave all the talking heads on the Nightly Business Report and Money Line the opportunity to soothe the masses with the same old buy the dip crap.
It gave credence to Abby Joseph Batapaglia Cohen and made Acampora lose even more credibility (if that's possible). Even Fleckenstein, who hasn't been right since the Reagan administration, is calling for a substantial rally. Maybe it'll happen. Since Favors is calling for it also, who knows. I do know that I will be shorting the hell out of what could be the mother of all dead cat bounces as soon as Abby and the gang manage to foist the GSCO IPO onto an unsuspecting, complacent, buy-the-dip, "no reason to sell because I'm in it for the long run", fat & happy Amurrican investor.
Until then, the big money with their fingers on the buy & sell buttons will play this market as if it were a 2 string banjo. The mini cycles of accumulation will continue until it's time for them to truly change the psychology of this market. Complacency will become panic and the fit will hit the shan. Be assured, however, that when the last bull throws in the towel, the same players who caused the panic to facilitate their distribution, will begin to accumulate again at that exact moment. And so it goes. God help us all.
Franco |
