Wishy Washy

Double bottom on the futures, or falling wedge? Hard to tell. After yesterday's ride which kind of did two separate things higher and lower, slightly lower prices today would not surprise me, nor would a further retracement even lower.

The 38% Fib level remains at 1393.  1430-1435 remains above. The market feels a little wishy washy perhaps due to the back and forth nonsense in Washington.

Here's a new one for these posts: if the Facebook gets one tick above 33.45 it will create a three-wave structure from the IPO to the 17.55 low. I've traded it using options here and there and have made a little fast money in it, nothing much. But what intrigues me now is the potential for a genuine Wall Street markup.

Not only was Morgan Stanley burned on the FB IPO, but so was JP Morgan and Goldman Sachs. This IPO essentially wiped the floor with these firms, and tarnished the Street's reputation to boot.

Wall Street, in my opinion, is waiting for payback.

I think the Facebook may be setting up for a classic example of the four-phase stock life-cycle case study. Accumulation, Markup, Distribution, and Markdown. I'll be re-reading the chapter on manipulation in Reminiscences Of A Stock Operator, as I think there's not a better explanation of how the game is really played anywhere on the planet. I'll have more on this soon.