Bears AWOL (thus far)

UPDATE 10:00am EST: As usual the market throws us a curve ball – after being down nicely overnight it pushed up by the open and we’re back in Friday’s VWAP zone.

Despite two days of massive rallying and an overbought market the bears remain in hibernation.

What gives me pause is the Yen/ES futures correlation chart. Either this is a bull trap or the bears are in for a massive rectal exam. If we can’t drop on a rallying Yen then it’ll be doubtful we drop today once the Yen reaches short term overbought levels (remember that I only watch this correlation during NYSE hours).

Well, it’s still early in the day – as I’m typing this we just dropped below VWAP on all index futures – maybe it’ll get interesting right now.

UPDATE 10:22am EST: We remain in a range bound market and MM are busy running stops.

Someone mentioned AZO the other day and how ‘a many have tried to slay the beast’. So true – but maybe we’re getting closer – I’m sensing a disturbance in the force.

UPDATE 10:33am EST: While the market is grinding us like a cheap stripper at Spearmint Rhino you might as well read up on how Wall Street is going to rip you and your children off at the tune of billions courtesy some very appalling actions by our Fed.

Mmmh – I wonder which link they’ll click first…

UPDATE 10:49am EST: Well, looks like it’s time for the rectal exam. What… you ran out of lubricant? Great…. Seriously now – we’re a few points away from 877.86 – we breach that one and we’re talking blue scenario. Personally I have no idea where the bears are – there seems to be no limit as to how high the tape can be pushed at this point. I keep adding puts until we breach the Jan 28 highs – after that I’ll probably hedge and watch the ensuing rip.