The collision of global markets and social mood

Tuesday, April 1, 2014

The Market Is The Decider

Once again the action appears in the overnight session. Futures have broken out and will most likely lead to a cash S&P breakout above the all-important 1875.92 level cited previously. That will raise the odds of new all-time highs significantly.

Does this mean the market will continue to new all-time highs in a straight line? No.

To me, all it means is that the market has yet again ruled out an impulsive decline. It has not ruled out a further correction.

Today I'll be watching A/Ds, ticks, VIX, and the under performance of the banks (IYG) vs. SPY, JNK, and HYG over the past several sessions. So my plan may be to look for a correction while looking to buy the dips aggressively. This may include adding UVXY and SPY puts against my trimmed SPXL position.

The only thing I wouldn't want to see would be a sharp, impulsive correction below the 1820 area on high volume and bearish internals. I doubt it would occur, but the market will be the decider, not me.

Elsewhere, I find it very telling that the Facebook's COO has sold 58% of her shares since its IPO.

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