Testy Tuesday – Back to Those 5% Lines

Oh yes, right back where we were last Wednesday, when I said we had to hold that 1,650 line to avoid BIG TROUBLE.  We did manage to spike it into the close and finished at 1,651 and now we'll be back at 1,645ish this morning and looking to do it again.   

We already failed to hold 15,000 on the Dow and 9,400 will fail this morning on the NYSE so those need to be taken back and we KNEW this would happen because we failed to take back our bounce levels (see last Wednesday's post) and that's why we watch them in the first place, isn't it?

Also the same as it ever was is oil spiking back over $108 (/CL), where we're looking to short it again in Member Chat either below the $108.50 line or below the $108 line if it crosses back with VERY tight stops as they are pumping the Hell out of this thing on war talk – even though Syria has very little to do with oil as it only exports 263,000 barrels of oil a day and does not have access to any critical ports of pipelines.  Fear-mongering is good for short boosts, but they tend not to last.  

Of course the real fear-mongering is coming from within as the GOP gears up for yet another debt-ceiling battle and, as much as they try to spin this market pullback as being about Syria (a country that is surrounded by our allies and bases), what's really spooking the markets is the very real fear of another massive collapse – like we had in August 2011, when the S&P fell almost 20% while the Republicans held the nation hostage.  

IN PROGRESS

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