No more useless reversals...please!

As much as we wanted to see a meaningful rally,  the ill fated reversal attempt of late just had no go. Today,  those who were playing the reversal at 820-830 SPX were saying "uncle" at the end.   Oh yes, the latest mighty low has finally been broken on all front.    Basically, what happened today just occurred a day later in that, "Unfortunately, it seems most are now complacent, lackadaisical or just would prefer to accept the fact of going lower".     It was way too much to ask for back to back days of reversal rallies, exhaustion just sets in sooner than later.    You name it, DOW, SPX, NDX RUT... all had a new closing low for multi years.   As noted, the after gap down reaction was going to determine the trend for the day,  it was a lower trend emerging,  no follow through was going to occur today.  In the end, everything got destroyed.   It's important to always learn and take something away.  Yesterday, we noted there was hardly any movement in the stocks, groups we monitor during the rally.   Today's action answered the question of why...it was simply a 'BS' the day before.

At DJIM,  we have been debating that it is not "IF", but "When" we break through the recent low.  You can't bottom because the intraday low- hi ranges have not receded enough if you average it out over say the last 15 trading days.   In a way, we are glad that it's coming sooner than later.   Honestly, nobody can take those idiotic bounces anymore.

Right now, all bets are off!.   Is there going to be a new wave of selling coming or is it going to be a quick washout?    At this point, we don't know.   We are still very much in a what may turn out to be a bottoming process,  we feel we may have just entered the final phase of this process.    And please,  Mr. Market,  no more reversals until the financials stocks stop foaming at the mouth.    If people wonder why we aren't getting the the kind of bounce we're hoping for?     As we have said many times before, without the participation of financial stocks, any bounce/rally will be so short lived that any long trades are just not worth the effort.

Things are changing quickly on both the economic news and corporate news front by the minute.  The situation with Citigroup and GM/F lately are of great concern to traders.   The relief may be here in these names, but it's hard to imagine what news the market will like or need.   The upcoming holiday sales events are also of great importance to us.    One thing is for sure though,  nobody is expecting any good news.   Therefore,  any change turn of events that spell good news can give us a perhaps tradable rally from whatever the low we will set in the next little while.    This market isn't as "nail on the coffin" dead as many would think.   All it is right now is that it's tough to get a good long trade going.      We do have the bearish ETF's at our disposals, if you can live with the possibility of reversals at any point.     Be neutral, traders' mood and psychology is very lousy.

Well,  we have two more trading days this week to bring us back meaningfully over 8k DOW.  It may be meaningless in the big picture,  but we're sure a lot of people would find comfort knowing that we won't be spending a long time in the 7k range.    We'll be at significant support levels (AGAIN!) at 790SPX...who knows what reversals gets spawned or not from here.