Thursday, September 3, 2009

Boring action

Fade the opening gap. That's the market script. China goes up 5%, the futures point up, and then they sell the gap. Tomorrow we get the BBE (big bad event) unemployment numbers; so the conviction level of the bulls hand right now is tenuous, so they can be pushed around.

But traders are conditioned to buy the dips and sell the rallies when the market is consolidating, and that's all today's action looks like.

A snoozefest.

But if you don't want to watch Goldman's huddles, you could always watch the ones on "The View."

And former Governor Rod Blagojevich will be the headliner on the premiere of the new season Tuesday, touting his new book, and looking for redemption.

No wonder Eliot is getting itchy!


CK said...

RE: Rosenberg yesterday

Slow to comment here. I still think basing the return % off of March lows is faulty. How many funds closed simply because they couldn't take their 20% until they got back to green. I don't think that it is irrational to assume that this alone caused another 10 - 15% drop in the S&P. If we had pulled back to a 40% drop instead of a 57% drop, the S&P would have fallen to low 900 and we would be looking at about + 10% right now. Not so out of line, but I mostly cashed out anyway because the chatter of the selloff seems like it will be self-fulfilling.

Palmoni said...

I think however, that the increase in the short base will prevent a deeper pullback.

But you are totally right on the levels that we went to. They were fantasy prices.

CK said...

What do you think of ALTH? Looks like somebody is pissed that their 60,000 puts on the Sept 5 are about to be worthless.

FDA always takes the panel's recommendation.

I bought today low 7's. It should flip back when they give up.

Palmoni said...

I saw that last week as a stealth play, and I think it was just another case of put buyers trying to make the market say "something."

Did you notice a few days ago, that just an ungodly amount of Sept 35 puts were bought on GG? The stock then ramped 5 points in their face!

CK said...

I don't follow gold. I think Alcoa basically said yesterday that they are back and that could be a huge push for the start of October.

I had planned on buying the AA Oct 15, but waited, luckily, and then bought the 14's cheap.

Palmoni said...

And AA normally doesn't "pump" things so it must means things are better than what they are saying!