Almost as if orchestrated, overnight futures were bid up all evening and night - and we enter the day prepared to gap up, creating a wonderful opportunity to celebrate the renaissance of American manufacturing via General Motors (GM). Ah, a fairy tale indeed... and wholly unpredictable.
As mentioned yesterday, the perfect scenario if Fri-Tue was the first part of a new leg down would be an oversold bounce into resistance. Yesterday the bounce was pathetic and fizzled late in the day, but thankfully the cynics among us knew not to short ahead of what had to be a glorious day of automotive IPO-ism. Today will provide a more opportune entry point as we gap up closer to the S&P 1192 level (200 week moving average). There remains a gap to fill from Tuesday's gap down at 1194-1197, so it's a bit of a tricky juncture... but essentially short exposure can be put on in this area (1190s) and then if 1200+ is broached one has to accept the non stop path to S&P 2500 once more.
I will be seeking individual equities to short today, that have run into resistance on our remarkable, surprising, totally out of left field overnight gap up into GM day.
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