Selling Strength Remains my Operative

Michael Davey again with a quick comment elixir…

Sorry for the no-post this afternoon – I was out the door soon after the close and now back late. FYI, I believe Mole is back at his post here tomorrow. So for the moment – put your pencils down!

I missed tonight’s party in DC and have no idea re the take-away. Looking at the futures (up a decent clip, though nothing too dramatic) I’ll presume nothing terribly new was directed against the Financials, Wall Street, Etc.

I’m not all that interested anyway. These things don’t tend to be terrific market shakers and O has shaken the markets already; what is the upside for him to attack tonight? Maybe he did, I don’t know. I hear enough news during the day; I’m in a vacuum for several more hours just now.

What I do pay attention to is the action. We did manage a positive reversal Wednesday, on rising volume, and even though it was not a broad affair (breadth was sadly anemic), it is the best standing since the floor fell out last Wednesday.

So, we’ve begun a bounce. That is good because everyone with skin has been looking for it; bulls and bears alike. It ought to be a good bounce too, since we’re marching higher now ahead of Friday’s GDP report (which is expected to be much better than expected, I should add; I’m sure you are aware of that much already).

Yes, I see a lot of folks (bulls and bears again) discussing selling into the huge up-day coming Friday.

Well, smoke ’em if you got ’em, I’m at that party already. It is true I was covering-up this morning, but already then on the afternoon rush I began selling again. I sold more again tonight (just now in fact). I’ll be selling more tomorrow as well (assuming we’re rallying on the expectation of a rally coming Friday). If we’re still rallying Friday, then I’ll stop selling, because that would surprise me the most; freeze me in my tracks.

Yep, I’m obviously going to get crushed. The PPT is stoking up the hot pokers and aiming for my ass as we speak.

Good game me.

…lend me an ear and i’ll sing you a song.

Mole here: Great post, Michael. Unfortunately I must disappoint my intrepid stainless steel rats – I’m stuck in San Francisco until Thursday night. So, the first time I’m going to post again will be Friday morning – hope ya’ll can forgive me for the extended absence.

Nice tape in the past few days – just the kind of stuff we need to be seeing. Stay the course long term – play the swings if you want to have fun. Nothing much to be added at this point – also look at the VIX buy signal tonight – worth nothing.

And of course then there is this – thanks to TransworldDepravity pointing it out – didn’t check my charts today as I was busy running all over town from one meeting to another. But we are now the reaching the ‘Will Robinson Danger Zone’ on the CPCE – perphaps the bounce I have been expecting for three days now (silly me) will finally materialize tomorrow.

Cheers,

Mole