11:00 am (Hawaii) Analyst from I-Cap says we're heading to 650 on the S&P 500. Yeah, back to the 2009 low. He bases this on technicals, nothing else. No talk of economics. No talk of politics.
For now, though, the bulls are happy after a +423 day in the Dow, +111 in the Nasdaq (+4.7%) and +51 in S&P 500 (+4.6%). Not sure how many people actually dipped in before the close of yesterday's horrendous session, but today's bounce was a much-needed reprieve for longs. I got out of DGP for a nice profit, selling at 63.25. Today's low in DGP was 61.31, and it (with gold) has rallied into the close and after hours. DGP Now 63.53.
Not getting back in right now. A second margin hike by CME mafia is coming soon enough. The swings in DGP are big enough that buying dips isn't a bad idea. Just from 61+ to 63+ is nice enough for a quick trade.
FAZ is intriguing here. Though it got hammered with bank stocks way, way up, it rallied from 56.18 to 60.30 after hours. Earlier in the week, FAZ went from 81 to 60. Today alone it was at a high of 74 before falling to 56+. No regrets selling this yesterday at 70+. But I won't touch this without another catalyst.
CNBC just announced more Euro nations have banned short selling. Not sure of the details, but if this is a maneuver to protect bad stocks (banksters) from tanking more, it makes no sense. Corrupt banks have to go down for the system to be cleansed, to start growth all over again. Otherwise, it's just more of the same, no different from the US.
If there's no significant economic news by tomorrow's opening bell and the bank stocks tank, then it's too simple to be true, almost: Buy FAS (3x bank bull) and FAZ (3x bank bear) on deep dips.
Was today the turning point? Are huge inflows back into the market going to be the norm? I'm not betting on it. Yet. Why would anyone go nuts with big bets when the Euro bank/debt situation is still in crisis mode? If anything, I may start a teeny position in FAZ again. But I'm totally cautious about paper gold (DGP) until the CME mafia drops the other shoe with another hike.
Between the JPM/CME/Fed manipulation and the HFT machines, complete sobriety is necessary for peon traders. It used to be enough to be a pilot fish. Now, it's the pilot fish who can get swallowed up.