..pulling in the reigns on Dasher, Dancer, Prancer....
Friday, January 2, 2009 at 08:23AM Mid - December, we noted..
“Right now, last weeks high of 918+ got walled today and so is the battle line……Still, we may need a 'new catalyst' to move forward it seems, 918 has to fall soon or Bears will use this failure as a reason to call an end to this rally.”
What happened after was the market grinded slowly back down to a low 857 SPX a couple of times, the latest hit on 857 just this Monday. That pretty well puts the rally this week into perspective as we hit 910. That’s over 50 pts in a matter of hours and with 918 within striking distance, we felt it was time to go back into cash and just keep an eye on things. The strategy here since last week went to script with the E&P’s (and Financials/ brokers , GS making multi week highs led leading the way. Simply, we all can afford now to jump off Santa’s sleigh after jacking it for a joyride and sit back and watch if we break 918. We still need a “new catalyst” , in our view, a low attendance holiday trade is not it. Also, as we’ve pointed in the past the corporate ‘ bad’ news always seems to have a gag order in place over the holidays. We don’t want to wake up come Friday or Monday and get surprised with a negative PR at this point.
Yeah....trust and confidence is just not there for the market participants and we'd like to begin the year off trading on the right foot.
