Not So Fast 2.0
10:50am EDT: Program trading into the close yesterday indicated that something fishy was going on. The tape had melted higher slowly, further exposing the bears to the good ole’ boiling frog treatment. Trip trip trip.
Call me cynical but it seems that the people in the know had an inkling that the 10-year treasury auction today would go to hell in a hand basket. So, let’s bang the tape higher and follow up with a nice sell off. Buy the rumor – sell the news.
Of course all that is complete gossip and hyperbole – nobody really knows – unless you are on the inside of course. So, we have to stick with our wave count and what I’m seeing right now is that we stopped short of the green confirmation line at 951.69, which in a way sucks as I would greatly enjoy abandoning this region of pain.
This far the tape seems to have all the characteristics of a down day – a channel breach of that lower line shown in the chart above would be a nice confirmation.