Channel Surfin’

11:13am EDT: We’ve got ourselves a nice channel here:

We basically crossed the hypotenuse of this channel construct in a few trading hours – the majority of it this morning. Karl Denninger put it best in his private blog early today:

Fucking assholes – you have to hold overnight in this market to have a shot at catching these moves, which means you HAVE TO accept the risk of a gap the wrong way – or you just deal with missing these opportunities.

Hehe – I feel you Karl – it’s been rough and trading this tape is tantamount to throwing darts at a board. On top of wild swings we’ve got sector rotation and solid floors coming out of nowhere. Which is why I’m mostly in cash right now – I actually did very well overnight trading the EUR/USD – those currency pairs are quickly growing on me.

Anyway, I am not going to pick a direction yet – yes, this looks a lot like Soylent Green but for some reason this looks way too easy. If we hold here until the close – yeah, I’d be more confident. It really doesn’t matter though anyway – there was no way I was prepared to put any serious coin into a possible down move ahead of the 4th of July weekend – and maybe that’s why we dropped in the first place – the bus was pretty empty. But how often have we seen ‘clear moves’ ahead of a holiday be taken out the Monday after? Exactly – so, I’m not going to call a direction yet today – if we breach 888 then we have confirmation (and it’s probably too late by then to jump in).

What gives me pause a little bit however is the breadth on the SPX – which is currently reading at 20.6:1 – that is pretty bearish. Well, if it’s for real we should see further downside and that soon. But whatever you do – if you weren’t short going into this tape this morning – do yourself a favor and don’t chase it.

Anyway, talking about channel surfing – that doesn’t sound like such a bad idea for this weekend 🙂

I would wish you rats all a great Independence Day – but sadly we have long ago lost our independence and liberties to a small group of corrupt banksters. Make no mistake – the bezel goes deep and our administration is an integral and enabling part of it. So, I’ll just have to wish you a nice holiday weekend – relax – don’t think of any of the crap that’s going on – just enjoy a long summer weekend with your loved ones. Life is short you know – it’s too easy to let it pass you by.

Cheers,

Mole