Welcome to Friday the 13th! Futures are fading a little just prior to the open, although there is no economic data except for consumer sentiment readings that come out later this morning.
As I look around the news I must have seen the word STIMULUS at least a hundred times. I’ve seen it so much lately that it truly has become like the erectile dysfunction drug ads that are so annoying on the teevee. And since it is so annoying and we see it all the time, here’s the Stimulis ad again!
Stimulis: Because all economies have performance issues:
Supposedly the latest stimulus bill will be voted on today, oh yea! The logic of lowering taxes and spending more when having too much debt is already your problem completely escapes me. That bad math and all those illogical assumptions will one day soon result in the inability to service our debts. When that bomb goes off, I hope you have shelter.
Tech might be under a little pressure today as RIMM was downgraded. The Euro is under pressure too, so keep an eye on the currencies again.
The 5 and 10 minute stochastic oscillators will start the day from overbought territory. I wouldn’t be surprised to see us trade a little lower, but possibly come back up later in the day to complete some type of abc move. The spike yesterday is hard to count from an EW perspective, so I think we have to give it a little time to see.
Some of the technicians were calling yesterday a “key reversal.” NO, it wasn’t a key reversal until it is confirmed. And right now it isn’t. It looked like pure manipulation off of support to me. Real reversals come from deep oversold conditions when the internals are just ugly. That was most certainly NOT the case yesterday.
I wish that I could say that once the latest stimulus bill gets signed that the markets can then move on to do what they are going to do. But the truth is that since this bear market began it has been a constant and never ending bombardment of stimulus and money that we don’t have is just wasted. These actions are piling debt on top of debt in a most wasteful manner. And it’s going to the least deserving people in society.
On that upbeat note, have a good day with your trading; hopefully the game won’t be so wicked today!
PS - Don't forget markets are closed on Monday.