So are we off to the races once again? I’m not buying it. GDP #s brought out some Bulls and caused selling in USD but I’m sticking to my plan. I shorted $ES_F @ $1064.00 and will add as needed if the market heads higher according to my gameplan from yesterday. Today was the last day of Treasury auctions where we buy our own debt. I noticed the ADX +D on SPX Daily didn’t budge up one bit. Not a tad. Any no one I spoke with could explain it on such a large trending day; unless it’s a headfake. Whether it is or not means nothing in my mind because I already plan to scale into a larger short position bit it is an interesting concept. Only time will tell. My belief that we’re in for further downside continues. We must remember that for the last six months, the US has been the largest buyer of it’s debt and [now] with less quantitative easing I believe commodities will struggle going forward and lend to market weakness. The USD continues to be sold by everyone and their brother but without the Feds huge injection, I believe we’ll see further short covering and pressure on equity markets.
For the record, I did attempt to short BAC but was stopped out for a .30 loss. Trading that stock is like trading sand….goes right through your fingers unless wet and soggy.