OK, so let me get this straight. The world narrowly avoids having a slew of commercial passenger jets being blown out of the sky, sending thousands of innocent civilians to a horrible, terrifying death, and the market goes UP? Even airlines ended the day in positive territory! What the hell?
I would like to provide a handy reference, based on today's action, for any future news and how it will affect the market:
- Russia Declares Nuclear War on the U.S.: Dow down 37 points
- Nuclear Strike Annihilates Free World: Dow down 52 points
- Joe Lieberman gives George Bush a tongue kiss: Dow up 254 points on record volume.
Well, in spite of my pissed-off tone, my portfolio actually did OK today. The only reason is that (1) I closed out my SPX and OEX puts early in the day, since I could sense today's action was completely messed-up (2) I have a lot of oil-related shorts. But, even so, today's action was just stupid.
It took me one glance at one chart early in the day to know there was trouble. This is the S&P 400 MidCap (daily basis), and as you can see by my mark-up, we are not in the series of lower highs and lower lows that we need. This sucker seems to be strengthening.
I've bombarded you guys with enough charts over the past few days. I'm going to go stew for a while.