Line Of Defense

UPDATE 2:46pm EST: After much chop chop we slowly degraded back to the old line of defense:

Are we going to be greeted by some long ass candles again? Or is this where we finally breach and challenge the November 21 lows? After three days of sideways tape I frankly don’t care anymore – just do something! 🙂

I’m keeping an eye on this channel, which thus far has been well observed – I’m not completely useless it seems. FYI – we are way below VWAP at this point on all three index futures and Mr. Yen is beaten to death. This is not a bad set up and there’s a chance we can drop, but I don’t trust the tape – as I have pointed out on several occasions right now. Zero is still flat as a flounder – not much momentum.

XLF is making new lows – 7.65 as I’m typing this – I haven’t checked the comments in the past hour but I’m sure Eric is getting excited. Let’s see if the rest of the market follows suit.

UPDATE 3:08pm EST: Rick Santelli strikes again – you GOT to watch this. BTW, this is one of the rare moments you will see a CNBC link on this blog – mark your calendars.

UPDATE 3:43pm EST: Quote of the Day:

Who cares where it was 6 months ago? That’s not what makes something cheap. What matters is where it will be 6 months from now. — Goldmund over at the Slope

In other news – new SPX lows for the week/month. This tape is really strange – it’s all way too orderly. If I was in the market right now (which I’m not) I’d get a bit suspicious.