4/7 post market note

From the firm, here is last nights post

After stalling yesterday and rallying back some today the market pushed downward, deeper from resistance near 850. I am sure the media will cite Soros calling this a bear market rally or Marc Faber calling for a 10 % correction or Citigroup's Chief Strategist saying to be underweight U.S. equities. For the first two gents I wonder if their funds are currently short and they are trying to jawbone the market in their direction … shocking thought I know lol ! … As for the Citigroup chap thanks for the underweight US equities recommendation after a 50+ % two year thrashing ... nice timing !

Anyway as those of us who follow unbiased market evidence we know the following; the market rallied 27.00 % and slammed into stiff resistance. Clearly this is the more likely reason we witnessed some profit taking/selling interest the last few days. But that wouldn't be sexy enough to say on TV I guess.

Realistically it is too premature to call it a new bull market given the macro landscape, conversely it is probably too premature to say this rally is done/over as well. Remember it is not the point drop (or gain) that matters, rather how they go up or down (internals) that counts. That said while internals were skewed negatively today they weren't nearly as negatively skewed as the positive skew we saw in Mid March which catapulted this current rally. So while there has been some selling of late, the buyers still have control at this point.

In tomorrow's S&P 500 and NASDAQ 100 notes we will look at levels of downside support on the two indices.

If today's action was unsettling we suggest revisiting yesterday's S&P 500 note where we suggested several tactical trading strategies to remove the emotion such as locking in some gains or set trailing risk stops. Being prepared is what makes one comfortable with risk as well as reward. Its' when you don’t lay out a game plan that emotion creeps in and you end up reacting (as opposed to being proactive) and watch like a deer in headlights that you should worry.



FusionIQ

Kevin Lane


posted by Peter Greene