Finally a down day!
I thought I was going crazy. We keep going bearish into the weekends and the market refuses to go down – it’s very frustrating. There is no particular bad news, mainly this is a long overdue pullback that we’ve been expecting, led down by oil, which is off 5% in pre-markets (8am) back at $47.50 now that the NYMEX shenanigans around contract expiration have run their course. This is nice for us as we were shorting oil futures since Thursday and I had just said to Members in in Friday’s chat: "Oil is still at $52.28, that’s a total joke. Also been flatlined since yesterday’s ridiculous pump (they did spike ti to $53.50 for a bit at Europe’s open)."
Today the joke is on the oil bulls as crude plunges on the same fundamentals that have been evident for weeks to anyone who read the actual inventory report and ignored the Criminal Narrators Boosting Crude and their ridiculous parade of industry "experts," who, along with the pump-monkey in chief, attempted to herd the sheeple back into the energy sector. OIH has been the focus of our shorting so far and we noted the weakness in XOM last week as a leading indicator that the party was over.
Now we’ll see how well our levels hold up during a commodity correction and we will, of course, be holding off on our bullish selections we made in both the $100K Hedged Virtual Portfolio this weekend until we see if we can hold the same old levels were watching on Wednesday: Dow 8,000, S&P 847, Nas 1,585, NYSE 5,321 and Russell 456 as those are our dollar-adjusted support levels. Below that are our chart levels of Dow 7,900, S&P 833, Nasdaq 1,580, NYSE 5,225 and Russell 444, below which is a full 5% gap to the next level of support so we get very bearish if we lose 2 of 3 of those levels.
As I mentioned in the Weekend Wrap-Up, where we reviewed all 30 of last week’s featured Trade Ideas, THIS is the week when the games really begin with 150 of the S&P 500 reporting and very little economic data to distract us from the fundamentals of earnings week. China did its best to distract the masses from clear signs of a slowing GDP and diving export numbers by having Premier Wen Jiabao say…