Today was one of those days when you struggle to find your footing… The futures markets were looking depressed pre-market. Trichet let down the Europeans and Bernanke was on deck. The jobs numbers were lame, but we’ve gotten used to +400k… Obama is batting clean-up after the markets close. It’s unlikely to be positive for the markets tomorrow if Mr. (*President) Obama sticks to script. The curious sensation of knowing things are not on stable footing, seeing buyers trickle in, then run for the hills, then trickle in again. I have a real love-hate relationship with this market behaviour. It’s relatively predictable, but the really interesting stuff gets lost in the noise.
Even with spurts of inspiration we suffered range bound boredom until Bernanke’s text was released. If you had $ES_F short or todays popular $SPY 120 puts you might have made a good trade. Timing was important this afternoon, being “long” (and contrarian) before the BB’s release would have been dangerous. We’ve since found a pseudo-floor at 1180. It hasn’t been an easy trading day, it’s time for me to stop or atleast “observe” for a while. The tricklers have moved back in and my resistance lines are drawn.
I don’t think I read anything even slightly amusing today. Except maybe if I replace “Policy Makers” with “Partisan A$$Holes” in BB’s text.
* Have you noticed that online forms give you choices for “Mr., Mrs.,Miss., Dr., Sir.” but never “President”?