All posts by uranium-pinto-beans

Friday Morning Focus

After siding with the bulls the better part of the last 5 years, the recent weakness in August, the worsening economic data, and the terrible price action had me switch my bias back to being bearish.  Trading through some of the bigger market corrections, namely 2008 and 2009, you know the counter rallies can be impressive, and sometimes down right mind boggling.  This has been one of those rallies.

An absolutely great read this morning come from Frank Zorilla.   FOMO.  The fear of mission out.  No doubt the recent price action, the constant dip buying, the spikes to the upside, are telling you what the longer term charts weren't telling you a few weeks ago.

Now the question will be.... is this rally going to continue?  Or is it one of the relief variety?

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Thursday Morning View

Stocks resumed their afternoon buying frenzy yesterday, shrugging off a nasty morning reversal lower to end the day over 1% higher.

$SPY was near that key psychological $200 level before price action turned south.  After the bell $DB announced a near $7 billion loss, which was unexpected.  Initially the stock fell after hours, but today the stock finds itself higher pre-market.

Jobless claims are lower this morning, but in order to claim unemployment you need to have a job.  The last jobs report continues the trend of a labor force with a lack of participation.  People don't have a job to get unemployed from.

The S&P500 continues to rally off last Monday's lows.  Yesterday brought the market up to strong resistance:

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Pacifying Thoughts

Stock futures find themselves flying high on another overnight levitation session.  Last week we saw similar buying frenzies send the market higher, only to see much of those gains erode into the afternoon.

Last Friday started strong as well, stocks were higher into the jobs report, and then fell off a cliff after the report.  I think we all know what happened next.  It's been an almost $13 rally on the $SPY from the lows of last week.  The relentless buying spree continues, with some of the buying furious enough that if this were a football game the referee would have blown the whistle already.  There is no mercy rule in the stock market.  Prices can run unabated to the upside, but when similar price action comes to the downside... oh boy.

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Wednesday Morning Reads

Stock futures are levitated in the overnight session posting an almost 1% reversal from yesterdays close.  Yum Brands is in a free fall with prices indicating a 'doomsday scenario' according to one analyst.  A fast food restaurnt holding company seeing its earnings fall and the word doomsday just don't compute for me.  But alas I don't eat Taco Bell or KFC, or Pizza Hut.  I imagine those that frequent those places would be upset if they could not frequent them anymore.  Although judging from the recent earnings report the growth is not as portly as before.

This mornings reads:

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