The Bulls Have Their Work Cut Out

The indices need to retake the hill if they want to prevent disaster. I threw in HPQ for the radar, the eps were a bit disappointing in after hours trade.

BROKEN !!!!!!!!!!!!

OK, so I had a momentary lapse of sanity yesterday when I posted the possibility of Devine Intervention to firm the greenback and hence have oil collapse and hence have the market rally. You all know there has been a heat wave on the east coast.It can still happen but odds are that the market has already made up its mind on where it wants to go. When am I going to realize that I'm in my happiest place (and most profitable) when I'm short.

The XLF closed 9 cents off the March low and will probably breach that in the morning. 52 week lows were being hit with reckless abandon in the last 20 minutes of trading and oil continues its wicked ways. The SPX closed at the lows and DJI was right there. The NAZZ jumped in the pool and gave up the ghost as well. Lehman became unhinged at the close and now you will start to hear every rumor possible regarding its imminent demise.

Here are my shorts:

AA-new short
SDS (long) double short S&P
DXD (long) double short DJIA
AG- was short all day and added in last hour
RTH- been short a couple of weeks
$NDX-july 1950 puts
TWM -(long) ulta short Russel 2000

Yes, I'm a little bearish. If it doesn't work it's been really nice knowing you.

Can You Say January Lows?

Not a soul alive that I've heard or read has talked about this in quite a while. Most seem to be in the "worst is behind us camp." This is one chart, but the S&P looks iffy as well. If the NASDAQ cracks and confirms DOW and S&P we may be in for some pain. The jury is out on whether a crack in oil will help us here.

Late Fade

So I acquiesced and bought a solar, actually two, SOLF and SPWR.I did great on both as I caught them early.What a group when their giddy up wants to go. What a give back though,especially FSLR which gave back about 10 points off the high. I hear a broker came out negative around 2pm. I thought the financials would try to rally but it ended up to be pretty lame. The DOW gave back about a 100 points off the high and some of the tech stocks were racing to close near their lows of the day. Not a healthy sign. The SPX is near a triple top around 1420-22. The NDX gave up all its gain and more, and broke its initial support. I am back in a little USO short, I was always told to trust my gut and I went against that yesterday. I'd rather be wrong than a wuss by not having exposure. I still like SOLF but it may need a rest.If oil does correct I wonder how the solars will react, really not a major correlation in the past. DRYS over a $100 again-wow.

I never owned an auto an airline or a retailer, but if the latter rallies further I will short the bejeezus out of the group.If this is just a rally in a bear market I will print money on the way down. I do think the consumer is in the crapper- and it will get much worse.

LEAP,SY,ADBE all acted fairly well today. Be careful, a hard rain might be coming.