"If all the economists in the world were laid end to end, they still wouldn't reach a conclusion." - George Bernard Shaw
Well, we never bought calls and we watched the market show a true consolidation, moving down dramatically before noon. By 2.30 pm. we had hit theoretical Dow bottoms of 10,850. All of this is good. Follow our Dow projections and note the support lines that we think this consolidation will slow.
We will not enter a put for today based on the severity of the downturn, and what we think may be a gap up. Follow futures carefully
I truly love chartists. Here's what John Murphy with Stockcharts said today. Of course, until yesterday we were in a bull market, and now.....the end of the world may be coming:
1. GLOBAL STOCKS AND COMMODITIES DROP AS BONDS RALLY -- NYSE INDEX BREAKS 50-DAY AVERAGE -- EFA ISHARES FALL BELOW 200-DAY LINE
2. FALLING MATERIAL STOCK HELP PULL NYSE COMPOSITE INDEX BELOW 50-DAY AVERAGE -- EAFE ISHARES VIOLATE 200-DAY LINE -- WEAKNESS IN CHINA STOCKS ARE ALSO WEIGHING ON COPPER -- TREASURY BOND PRICES ACHIEVE BULLISH -- VIX GAINS ANOTHER 20% AS STOCKS DROP
It is likely to have weakness in the market until late June. This is normal. But the moves after this may occur sooner than our normal fall sector change.
With this it will be key to watch our Dow projections as we follow support and resistance lines. Right now the ISM Manufacturing Index, coming out today, should show signs of inching up, a signs of a recovering economy.
Timer Warner reports before the market opens. Analysts think it will show upside.
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For those of your conflicted about the "great greed" of Wall Street, I hope the following article opens your eyes, as the greed is in our blood. We need a transfusion.
From The New York Times:
Who Knew Bankruptcy Paid So Well?
Bankruptcy specialists have been enjoying an unprecedented boom, but some fees are raising eyebrows.
http://nyti.ms/a3vLYH
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