It’sa very sad day in the market when I can send out an Alert at 9:48 that pretty much lays out the whole day’s action (move up to 2.5%, pullback to 2%, failure there leading to 1.25% finish). In fact, my comment to members was: “the closer we get to yesterday’s highs, the more nervous I am that we get about a 2% pullback on profit taking so don’t be the last person to take gains off the table!” We had one mother of stick save into the close but all it did was get us back to my levels so now we’ll see if part tow of my prediction pans out and we fall all the way back to test yesterday’s lows again on the GDP and Jobs data.
We are still overbought and the VIX certainly isn’t complacent at 42.25 but the buyers still are as Da Boyz sell the hell out of the markets from noon until2 then start buying again for an hour and then have CNBC tell the retail investors that the sell-off was all because Tim Geithner “accidentally” said that aglobal currency wasn’t a terrible idea. Good comedy is all about timing and teamwork. Geithner floated his one-liner during a Foreign Relations Council meeting and the dollar went into free-fall – that was the set-up. Then, after the damage was done, his long-time comedy partner (they both worked in Clinton’s Treasury) and now Fund manager, Roger Altman, pretended to be a regular member of the audience so they could close theconference with this zinger:
“I’d like to ask one final question, in effect on behalf of the market,” said Altman, “Let me ask the question this way. Do you see any change over the foreseeable future in the basic role of the dollar as the world’s key reserve currency?” Geithner responded: “I think the dollar remains the world’s dominant reserve currency.” See, all better! Not since the great comedy team of Rice and Bush have we had apolicy duothat could keep the audience turning in circles like this trying to figure out what the hell they are saying.
If you thought the markets were jacked up at the end of the day, you should see the pump job they did on the futures once the markets closed. The Dow was driven all the way up to 7,794 at 2:45 am in a buying frenzy…