I’m still perplexed… After the worst consumer confidence measure since 2009, the market is ‘rallying’ (it’s positive – barely). The SPY is consolidating as I type this around 121.50, GLD is holding up better than expected and the VIX is crumbling. Europe has closed at about even.
There was a commentary I saw pass that said “organic sellers” are non-existant and that headline shorters are all that’s left. Whomever “organic sellers” might be, I think there’s some truth to this. I mentioned earlier this morning that any positive news might hold greater sway than negative, this is playing out, even without positive news! To be fair there are whispers of QE3 and screams of, “duh”. What should we make of all this? Probably, sell straddles. Count on a channel until all the “organic gardeners” have come indoors?
If “organic buyers” are holding this market afloat, what would make the “organic sellers” come back to the party? They could look at their fibonacci’s and cross their fingers. They could even read ZeroHedge before they go to sleep. If they haven’t come inside sooner, I’m guessing the ADP employement numbers on Thursday, and/or the non-farm payroll numbers on Friday might just do the trick.