Monday, July 13, 2009
Last Thursday's Bounce
Today we had the bounce I was expecting last Thursday. It occurring today makes it more complicated from a trading perspective than if it had occurred last Thursday. I had been expecting a bounce and forced myself to short a little bit today though there was plenty of fear attached to that trade (in timing only, longer term I am comfortable). In the short term, the numbers out of Goldman tomorrow really don't matter that much. What matters is the reaction to the numbers. A very bearish reaction would be for Goldman to smoke the numbers, Goldman and the financials open strongly up before rolling over after 9:30. A very bullish reaction is similar volume, similar breadth, and strengthening throughout the day just like we had today. If that occurs, the testing of 870 may be complete. After the bell today Dell came out with negative comments and CSX came out with positive comments. Tomorrow morning you also have retail sales. The next two days will tell you alot.