When No One Notices

Apple blew out earnings.  The markets went nuts overnight, thrusting higher.  Jeremy Siegel was just on Cnbc posing as "a bull on steroids."  He looked like just another academic trend extrapolator to me.

No one noticed that Apple guided lower on both revenues and earnings.  No one noticed that Germany had a failed 30-year bund auction.  And no one noticed that the ECB's Draghi said that "Now, the ball is entirely, squarely in the court of governments and banks." In other words, "we're not going broke just to pretend to bail you out."

Central banks exist to make money for private shareholders and are showing their true colors one by one just as the markets are showing us, one by one, that the party's over.  It will happen here in the 
USA, too.  The Fed will step back eventually.   Only when the market finally realizes it will the fireworks truly begin.


For now, there seems to be more work to do on the upside.  I see 1392-1400 as being a key area to be tested.  A great set up would be a magical levitation up to 1407, the 78.6% retracement, for a Bearish Gartley. 


Yesterday I dumped my SPY 137 calls to book the profits and then bought them back 15 minutes later.  Schizophrenic trading, yes.  But managing my risk in preparation for the next leg of the road trip Thursday and Friday.