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This morning saw yet another opening gap at the bell, this time in the bulls’ favor. As you can see above on an intraday chart of the SPY, we have since seen a fairly textbook gap fill, as the market decides where it wants to go next. While at this point I consider it more constructive to see those gaps get filled in order to fill out already-sloppy charts, I still have a hard time getting enthusiastic about longs with the S&P 500 back below the 1220-1230 area into the summer trading range. Moreover, the Nasdaq Composite Index continues to noticeably lag the other benchmarks, which is particularly troubling given how many high growth names are housed in the Nazzy.
The main issue that I see with the market here is the lack of strong-handed bulls willing to step up to the plate and buy with conviction. Without buyers of size stepping up to follow-through even the best of setups, we will see more of the same. Of course, that can change at any moment, but for now it is what it is. Beyond that, if you monitor social media, you will notice more and more traders becoming apathetic to this market. We are not dealing with a situation where people are scared, but rather one where traders are just about ready to take their ball and go home. After all, there are only so many times you can try to catch every single move in the market before you are taught an expensive lesson in humility.
Considering that the Club of Budapest, a highly esteemed NGO that provides guidance to the United Nations, seeks an end to compounded interest, it would seem that an end to the financial markets would need to be a part of that.
Create so much volatility through manipulation to the point where everyone gives up trading or trying to make money on investments. Then provide the world a solution based in socialism… no need for investments because the regional and world govt will now take care of your basic needs.
But I want fast cars, hot bitches and expensive jewelry – not free health care.