TGIF…is the DJIM market Journal wrap for Friday. Wish there were some comforting words, but when you see your market warning unfold before your eyes today, you’d be an idiot to say anything positive!. Time to let the dust settle or more like let some ‘Bull’ ashes settle before trying to give this market another shot on the long side. Outlook worsened after today’s Initial claims, the Phily # was really no surprise as we had outlined the underlying NY empire number stunk as well this week, “...but it’s what inside that counts and it was negative as ‘orders /shipments/ future expectations’ went sour ‘south’ (not seen since mid 2009)".
It’s the initial claims that are so troubling!. No wonder money is flowing into Tsy's, corporate bonds or just resting under a pillow at home, it’s the total disenchantment with stocks and the ability to make a worthy return as even a ‘macro’ hedge fund icon proclaimed this week. If you can’t make money on a direction from the world economies as Druckenmiller, it simply shows this a ‘fast traders’ market with machines trading or like doing here by keeping buys on a very short string and taking profits quickly when possible. Only good thing today was individual stocks did not take a hit like the ETF/futures, which shows it’s not panic out there and many are willing to stick out the daily/weekly gyrations. Still, it’s only a day now with realization of today’s 500k and the weekend headlines will gravitate towards it. So, the fact it’s mostly ETF’s/futures damage doesn’t mean it can’t change shortly if things don’t miraculously change and/or HF's want to their occasional liquidations into a month end as we head into the last week of August.