Look out Below

We got within 11 handles of the 1,228 target of 62% retracement in the S&P500 cash today,
Friday April 23.
The Dow cash couldn’t get to 11, 238, its target at 62% of the same multi month melt-down.
I think you should sell it here the first 2 times we get those prints.
The popular media, and our venerable vice President of Hair plugs for Men, and the speech rip-off king of the 90’s came out today bullish. Talking about how soon the US will be producing 100K to 300K new jobs a month.
Mr. Biden will find out that bullying legislation through a congress driven by bribes, kickbacks and pork barrel politics is a lot easier than magically declaring that the jobs fairy is going to kick in and start producing 100K to 300K jobs a month.
His statement alone makes me want to go buy some puts NOW. Short term pain has to be on the horizon, simply because there is general feel that now its safe to get back in the water.
Carcarion Carcaious is gone. Sheriff Brody and Richard Dryfus blew the Great White out of the water.
Earnings are looking up. UPS even is busier than anyone expected…And apparently, 300 a gallon gasoline is status quo now for the US.

I just see all the sentiment turning bullish and have to think to sell these levels, especially for an initial sell off. Longer term, we still have to get to 11,465, but really, that’s just one good earnings report from Taco Bell, Home Depot and Pizza Hut to signal that “Happy Days are Here again”. My goodness, even GM is running adds touting that they paid back their Tarp loan 5 years in advance.

Things are coming up roses. I think its time to pay your check, tip your waiter, and head to the nearest exit. Something tells me the Vice Police are on the way, looking to arrest everyone in the bordello, even the piano player.

But this is just my opinion. Get short at these levels, but use your stops. If we’re right, we can turn buy stops into trailing buy stops and move em down as the market breaks in a much needed correction.
After all, its been a 10 months since politicians have had a chance to go to crisis intervention mode.
I can’t wait to see who they blame the inevitable correction on. Speculators? China? Hedge Funds (Oh, wait, all the hedge funds have dissolved) the only ones left will soon have targets on their backs as well.
A major melt down will need to be blamed away on someone or something.
Certainly the US government’s spending spree, on national health care, increased regulation of commerce, with all of its unintended negative consequences laying in wait to bite some politician back, combined with the latest death knoll of free market capitalism, the always popular VAT (the chosen one’s latest trial balloon) surely that will not be blamed for the correction.
No, No, No…On this animal farm, all the animals are equal, but naturally, some are more equal than others.

Use your stops, just in case, but I think its time to start yelling “Look out below”…

Good Trading

Leave a Reply

Your email address will not be published. Required fields are marked *