"Tom and Jerry"

As the market flat lined nearly all day around 50MA, post day of a drubbing, you can’t help but think the  Bulls a.ka. dip buyers’ in this case aren’t in one of their “cat and mouse" games with the Bears.    As reminded earlier, a big sell off day like Wednesday‘s never brings in buyers until things stabilize and/ or clarity, which involves rational thinking comes back.   It some respects sellers have been rational during this 3 day slide now as ‘panic’ never ensued.    A cat and mouse game is one “constant pursuit, near captures and repeated escapes”.   Seems like the life of a Bull, doesn’t it, every time kicked and chased down and afterwards clinging by a string, they always escape and start a new run sooner than later.  

If we go with this never ending story of the market the past year, we have to ask why is now any different?.   Is the news this week any different than what we already heard, expecting and knowing we’re in a soft patch with the slightest chance of a double dip as in late June/early July.    In reality, everything is just stated in different words this time around.   Let’s face it, the European crisis spooked the life out of corporations worldwide in early July and business froze from doing anything or having any outlook.   CSCO, has verbalized this, but also followed up by saying end of July was very strong coinciding with Euro fears abating.   To be honest, what in the world did the market expect?.  A ‘hot’ July in terms of business?.  It seems the market forgets the pins and needles it was on in late June/early July.   This is why June end Q was such a strong earnings season and now July end is weak so far.   Simply, the market might be missing something here!.

Today, the cat tried quite hard to press the issue in the emini SP around 1075  and failed.  This will probably be retested before any chance of reversal considering the action.  This is also approx. where the very late July bear gap is 1086-1088.   Rest of the day, the cat sat on his romp waiting for the mouse to reappear.    Soon and as always happens, the cat will back off if he doesn’t get some friends to press the issue and the mouse will make a run for it.   By that time, the cat in Bear clothing will do nothing but scurry to cover.  We have to think this is just another, "Tom and Jerry" episode.