Wednesday, May 5, 2010

Morning Post, SPX, S&P 500, E-mini

Happy Cinco De Mayo  - Maybe we get a 500 point fall today in honor of this fine day.

I'd say the people in Greece are a little pissed off. At this pace in a year or so I'm guessing the rest of the buildings will look a lot like the Parthenon. Contagion, you bulls need to learn that word. This financial Ebola virus is spreading. When you have a debt bubble that has not popped (they have only taken the excess and stuck it in a closet) and the whole world has been funding the good times and all the excess on credit, at some time the math no longer works. the only reason we do not have riots like that here in America is because the entitlement packages are still in tact (and growing in some cases). There will soon come a time when the less fortunate on food stamps will no longer be able to pay the rent-a-center the 35% interest rates on their new LG 52 inch plasmas for each bedroom housing their 15 children, and they will be pissed just like the people in Greece. It won't be you and me in the streets till they get there. Then the biggie will come when we have a clash between the haves and have nots. I understand welfare and get it when people are less fortunate, but our welfare system is a great example of the excesses of the credit bubble and the "entitlement period" will end. The government knows it but will not admit it. We are about to face some really tough times. We can not continue to print money forever and hide hundreds of billions (if not trillions) in bad assets forever.

Earnings Calendar - No link cause they really do not matter.

Economic Calendar - Lots of stuff this am before 10. ADP was not good if you have not figured that out.

Pivot Points -I don't think they will matter much.

Mini rant here - Some meathead on CNBS is calling for a 10% correction as the end of the first phase of the "bull market" comes to an end. Get used to hearing this bullshit. It will be the money managers next straw to grab for. These fucking assholes really piss me off. What the fuck? The banks have been nationalized (not to mention FNM and FRE and GM and all the other GSEs) and for all intensive purposes are insolvent. The national debt is way out of hand. What the hell, does this shit not exist anymore? How can any economist stare this situation (called reality) in the face and see it with any sense of hope. this shit we shoved in the closet is real. It is the boogey man and one night that sum bitch is gonna come out of the closet and really go bump in the night. Fucking bull market - more like bullshit market. WAKE UP PEOPLE! Sorry bout that. I feel better now.

Minis are getting crushed. Down 9. Looks like (if the count is right) we're gonna open in the 3rd of the 3rd. The VWAP is at a paltry 1169, so hopes of pushing this thing back up atre all but gone at this point. Looks like the P3 is here and Shanky's top call is all good. Time not to worry about retracing that anymore. I think I was the first and some are even still holding out for another high. Good luck. Time to bite the bullet. Global financial meltdown is coming.

SPX Daily - Look at the pink boxes. Price bounced off the 50ma and closed at the lower BB. this chart does not look good at all. If this is the 3rd of a 3rd it will hurt. I'm not sure about the count (cause EWT is a bunch of shit as well - no one is ever sure about the count), but if this is one of those rare cases when we are not left guessing it will be painful. My initial target of 1152 looks like it may not be enough. The 30, 60 and daily charts now have continuing lower highs on the indicators meaning the trend down may finally be in place and hopefully they will embed for a while.
Can't give anymore detailed info at this point cause it would be a waste of time. I'll give updated charts when the market stops falling. 1152 was my number, but then again that may not be enough. GL!