Mr. Brightside

  • S&P 1215 was the closing low for the year and S&P 1201 was the intraday low for the year. I believe that technicians using these levels as a buy point are the Bulls best hope for the day.
  • If I was inclined to play the bounce I would do it through commodity stocks, but I'm not.
  • My sole position is a short on the retailers.
  • Since in my morning piece I gave the dark side, these are the positives I'm seeing:
  • Most sentiment surveys show that market players and advisers are negative on the market. Contrarily, that is a bullish signal.
  • Hedge funds are at a historically low net long exposure. That has been a good contrary indicator in the past but redemptions and large losses might have something to do with it this time around.
  • Even if the S&P makes a new 52 week low today the amount of 52 week lows in individual stocks should contract from the last time we were at these levels. Also, the banks are not making new lows. Both are positive divergences.
  • Do you think Hank and the Plunge Protection Team want the market cratering before the election?

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