So much has been trumpeted through many a throat of financial pundits about the resiliency of American consumers. That they carry the American economy, and indeed the world, on their purses. Now, true to the myth, and discourse, American people are coming to rescue. In fact, generation after generation of them.
They guarantee survival of banks, brokers, car manufacturers; they are there for Brazil, Mexico, South Korea, and many more beggars that are sure to come hat in hand. You see, now that the FED has a balance sheet as atrocious as many other banks around the world, the onus is upon the Treasury Department (The American People) to rescue failing institutions, and countries.
Asian markets, liking it a whole lot, went to work and bid everything up. American future markets followed suit over night and markets opened higher and stayed put.
Breadth has been improving, indicators are acting as they should in order to establish some sort of a bottom, or a base for a bottom. Some beaten up sectors have been turning in double digit percentage runs from oversold levels of margin calls of a few days back.
Things are looking OK at the moment. There is a lot of liquidity to support the market if those who have hoarded the handouts choose to do so. My feeling is that we get a pull back soon, and that pullback might tell us if we can change our trader’s hats for swinger’s coats. I have a sense that shorting this market may not be going to be that easy any more,
We are not, alas, dealing with a Jane Austen novel here, so, sense and feelings aside, my levels are 850, 912, 985.