Honestly..the best lead we could give into tomorrows performance is to get a good nights sleep, brew a big chug of coffee by 830 am and just in case position a mickey of Jack D', Jose or whatever is your fave beverage in your desk drawer for later. It's gonna be a helluva ride and most likely not just one way intraday and nothing less than triple digits. We expect violent swings and actually would be disappointed if they do not come. To predict what may happen would be insane, the possibilities are endless tonight. The anticipation just got louder today as the Jobs report has collided with the SPX breaking to 1304. Its amazing how often the ducks line up in the most opportune time. Well today's flavor of day in TA' was this SPX close, tomorrow it might be 12000 and yesterday it was the wedgies. It changes everyday as to what is important and is quite tiresome and gets confusing to the casual trader. If we stick to the most simplistic, its the 12000 to 12800 range we've been keeping here to.
Coming into the trading day, we said in part ..." Now the Bulls are left wondering what bailout will come for them without these rallies to save the downticks into the pit!." What we were alluding to is that as more subprime fallout occurs and because the monoline fiasco gets pushed to the side now, where would a rally originate from to help the financials and therefore the market. Little did we know they would drop so many bricks at once this premarket. We had foreclosures, disclosures, delinquencies, failed margin calls, distressed selling at UBS, MER amending..blah blah. They should've just gapped the market to closing levels instead of grinding. But that's too easy, its the grinding the takes traders money away as itchy fingers make you jump in and then slowly rot you away with another leg down and then another and so on. Anyways, the point was there is no saving the Gasparino way now.
Despite the day unfolding this way from the open, we had some nice moves from the mornings watch. Unfortunately, this market continues to be made for ones with big bladders that can capitalize quick the gains in a CMP, BPZ, which got erased fast or the very patient nerves of steel ones who could have stuck with the CMP, FDG, JRCC calls here from its first days. We also started to like the action in POT/MOS today once again. So, not a wasted day and we'd stick to names highlighted this morning in case an opportunity to fade a move comes tomorrow or otherwise.
Will we get there?. Town of Capitulation?. The truth is we'll probably not know till we've driven through it and then look back, we'd just settle for a gap down tomorrow and take it from there...or a surprise induced moon shot to just relieve the tension for now ....Good luck and we'll keep in touch during the day...