S&P 1290 is our Moby Dick

1290 seems to be the impossible challenge the past few weeks - it is the markets current Moby Dick - a picture speaks louder than words. We were talking about this exact same level a week ago Wednesday [Signs of Hope? Bueller?] It actually appeared the week previous to that as well.

Then we visited it again the a week ago Thursday. Then again this Tuesday, then again this Wednesday, then again yesterday (before falling off the cliff) and lookee here - where are we again in this market with no memory from day to day? There appears to be a wall of Anti-Kool Aid @ S&P 1290. Much like we are ignoring all fundamentals on individual stocks we will completely forget about the economic fundamentals if technicals move in favor of the bulls (they've been teased constantly the past week and a half) Why ignore fundamentals? Just look at that chart the past 2 weeks - it has crazy volatility, mostly 1-2% type of moves in completely opposite direction

A week ago Monday: Sell everything!
A week ago Tuesday: Buy everything!
A week ago Wednesday: Buy everything!
A week ago Thursday: Sell everything!
A week ago Friday: Sell everything!

Monday: Sell everything!
Tuesday: Buy everything!
Wednesday: Buy everything!
Yesterday: Sell everything!
Today: Buy everything!

Notice a pattern? If you do - please email me ;) And for all that 'work' we made about +20 S&P points. It's the market on Ritalin. "Buy and Hold" is sooooooo Spring 2007.

As I said a week+ ago we need to break this level (1290), and then get through that 50 day moving average which is just north of 1300 now and you know what means? Yes it's that time time again....

Until then it's just stock market A.D.D. I've pulled back short exposure for the upteempth time the past 3 weeks in anticipation of the Kool Aid trade to really take off. So far it's been the wrong move each time as the Kool Aid man's Kryptonite re-appears. One of these times it has to work, no?