My morning commentary: We all know that I'm bearish but this commentary has nothing to do with that fact. I believe that we will have a solid opening which may last 1/2 hour or so and it will give way to some selling pressure. Many jumped on the bandwagon yesterday and the market was in the midst of selling off when the rumors started to circulate and within 5 minutes the market ripped up over 100 pts only to give back 2/3 of the gains as quickly before moving back up a bit. As the morning exuberance wears off here and traders want to lighten up or flatten out before the weekend, you will start to see the market sell off. Most of the original spike up was due to covering by shorts.
- Flooding the markets with liquidity is all fine and good to quell fears a bit but it doesn't dispell the fact that if the leftist gov't wins there will be a major run on the banks all over Europe. It will do nothing to fix the problem. I will be buying lots of Vol today (VXX Calls) as no matter what happens, Vol will be off the charts next week as every headline out of Europe will move markets. My plays for the day will be to sell the rally and to buy lots of VOL. There are plenty of opportunities out there on both sides. I made all my money yesterday on shorts (AAPL, PCLN, GOOG, SLV).
AI
