Wednesday, July 21, 2010

Just Not Easy

Nothing is every easy is it. The markets broke down hard but it left investors questioning and bears wanting? I moved fairly swift adding alot of short exposure. The odds definitely went up that bulls worst nightmare may have started but like I said, nothing is ever easy. If the market would have closed below 1060, that would have been huge. Copper was up HUGE in the morning and than reversed. The reversal was big but not breath taking. Most of the move up was technical in nature and the reversal at a key area was a technical failure but once again it didn't reverse strong enough to quell all questions.

As mentioned in the previous blurb of a post, the sentiment is shifting negative against the European bank stress test. The Euro got pounded today. It has been up so much that some sort of snapback was almost inevitable but the last few days still remind me of a topping process.

At this point the market may completely fall apart or it may still try to hold it together. In my mind it has two trading days to try to trigger a short squeeze leading to something bigger before the door is slammed shut. Time is definitely running low. For the bears the market has no business going over 1085 and especially 1100.

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