If you didn’t think this was all about financial regulation, you would be wrong…

Thesis confirmed…

Senate passed the bill that was driving everyone crazy. When they write the history books, you’ll know that it wasn’t about the Eurotrash. It was a battle royal over the rulebook. In the end, it won’t matter anyway because wall street always finds a way to kill the goose that lays the golden eggs.

The doomed Euro is flying and gold is getting squashed. Our friends at Maiden Lane are busy tonight…

“They” will soon be saying that “its not all that bad” as they explain why we made back today’s losses by the close on Monday…

ps. Damn, Fly. That VXX was the sweetest trade of the year, bar none…Enjoy your cow…

The sooner this Financial Reform bill is passed, the faster we can get past this misery. It really doesn’t matter what it says, it just needs to be finished…and as soon as its done, watch the selling dry up…

After today’s utter debacle in the stock market, a little review is necessary.

Everyone is expecting an epic fail. Everywhere. The fear is more than palpable. So we should expect a “feroush” (ferocious whoosh) lower one of these days. Maybe tomorrow, perhaps Monday.

The lopsided nature of the market on the way up, the “flash-crash”, and the way oversold market of today proves that traditional technical metrics must be adapted for the extremes of the HFT world. It’s all in or all out. All long or all short. Until we reach extremes you could not think possible.

The ramifications to the economy are certain. The yearlong rise in the capital markets bought confidence and some portion of economic stabilization. The trend-following Wall Street salesmen went on CNBC to tell you how strong the economy would be because the market was telling them how strong it would be. They did’nt know they were being lied to, again.

Because confidence and stabilization was bought with a rising market, you must expect it to be torn down with a falling one. And after today in particular, confidence will be questioned regardless of the economic releases. It’ll take some time to work into the economy, but unless there is some miraculous market recovery, expect confidence to be shot. You will now here about the inevitable double dip from more than just Roubini.

I’ve got my list out for a big bounce, especially in energy and technology, because we can and will bounce fiercely. I’m waiting for the feroush and a positive divergence in the intermediate-term trading charts…

an EXCERPT:

We spent a lot of time asking why the supply of stock for sale had disappeared during the market’s rise. It wasn’t until the entire crash was made back did supply suddenly appear. Now there seems to be an unlimited supply of stock for sale and no buyers—even as we sink to test support levels. Technically, the flash-crash has given us our parameters for the intermediate-term, and thought the parameters are rather well-defined, it could be a violent ride moving from low to high and back again.

AMAZING…

SPX: Primary breakout near 950. 50% retracement near 950
DOW: 8900, 8900
Naz COMP: 1900,1900

Guess we have our eventual downside targets…and it means we won’t get there–or we’ll blow right through it…