So much for Galleon liquidation sales. There didn’t appear to be any such pressure in the market today as we gingerly swiug in and out of daytrades just waiting for another death spiral. Waiting for volume sell orders that never materialized. So much for going shorter than I normally would have but all the indicators were there.
- The Bove downgrade citing concerns on increasing loan defaults [hello, Wall Street were you listening?]
- The USD was up four bits at the open putting major pressure on commodities
- Jobless claims came in higher than expected 531k vs. 519k concensus
- Galleon liquidating holdings
- China advised to raise rates immediately and India admits to live w/higher inflation [HT acrossthecurve]
- Not to mention a very toppy, overbought market which has a retraced 49% of the drop from’07
Yep, I thought, I’m tightening my stops and scaling into further shorts here. So what happened? Well if there was mass liquidation from Galleon today, it was sporatic and unnoticed for the most part.
- The USD selling in the US continued easing constraints on commodities and then the announcement.
- Rumors escalated today that Congress will extend the homebuyer tax credit expiration date past Nov. 30th and open up the program to non-first time buyers. This pushed home builders and insurers higher aas well as agiving strength to lenders. [Bummer b/c they looked pretty Bearish up until then]
- President Obama’s pay Czar, Kenneth Feinberg, slashed the pay of the top 25 executives at seven firms which had received taxpayer bailouts; up to a 90% trim which will be converted to long-term stock holdings.
By the time traders returned from lunch, the warm-n-fuzzies were returning and the Bulls clawed and scraped to bring the market higher. Job well done. Have I changed my tune? Am I taking my lumps and covering my shorts? [looks around the room] Hell no. All of the above still apply and I hear about one more bailout program coming out of my pocket BEFORE seeing jobs coming back into the market, I’m going to vomit and mail it to Congress. What good is buying a home when you can’t pay the mortgage. It’s become ridiculous but I won’t start ranting. It’s useless. I will scale in further if/when ES approaches $1123 with my ultimate *kick myself in the ass* draw the line in the sand @ $1135.