Sell The News
Panic buying came into the equity index complex on the heels of the Florida ruling, essentially giving the election to Bush barring any more lawsuits. However, a funny thing happened on the way to nirvana — sellers were waiting in the wings. And in a scenario far too familiar to the bulls, sellers quietly offered the market lower. Now, 90 minutes after the news, we have a complete reversal happening as the SPZ is making fresh lows at 1364.50 after posting a 1393 high post news.
I am looking for a trade to 1348 today, at which point I would cover existing shorts. Longer-term trades point to any settlement below 1345 as extremely bearish for this market. Right now, I must say, there is no joy in buyerville, as sellers are using every opportunity to give the buyers what they want.
To paraphrase a hedge fund trader friend of mine “the claws are out, and the bear is hungry.”