It was whale of a day. Nothing much really happened in terms of end price but lots of things happened in between. It was only yesterday that I wrote: “I do not believe that the powers that be will allow any meaningful correction in the Indices”. And sure enough, the plunge protection team was out in full swing to buy the dip in the morning. They did stop the panic today morning but there were no believers or buyers. So the bots had to close their position by the end of the day and the market was back to where it started. If you know how the house operates you can play your bets accordingly.
By the end of the day Euro was back to its lows of 1.2915, Crude at $ 95.575, Copper at $ 3.63, Gold at $ 1579.1, Silver at $28.89. Short term crude is reaching oversold level and any close near or below $93 may result in a dead cat bounce. Same is the situation with Gold and Silver.
While the trend is firmly down, I am expecting a short term bounce. If we see further sell off of all the asset classes on Monday, it may not be a bad idea to close the short positions, take some profit and wait for the bounce to complete. In any case my short term target for SPX is 1330 which is about 23 points away. Even if we come close to the target intraday Monday, I would take that as a sign of fulfillment of promise.
It has been an exciting week. So far, we have played it nice and safe. We have not taken any undue risk, nor front- run. We should now take the money off the table and be cash and cushy. I think because of the JPM saga, the BOYZ will try to do something silly soon. But unless they feed the beast with more money, it will not sit quite. Let us see how it plays out.
It’s going to be a wonderful weekend. Sunny and nice. Let’s have a life and enjoy the weekend with our loved ones. Let’s forget Greece Spain and have some fun instead. Thanks for reading http://bbfinance.blogspot.com/ . Hope you are enjoying my blabbering and passing it on to someone who you think might benefit. I am looking forward to your comments and emails.