Friday, September 19, 2008

09.19.08 - Market Loves Red

Socialist Red equals Capitalist Green today as we witness heavy buying across all sectors. Cumulative Adjusted Tick is as strong as I have seen it in a long, long time as we run back up to R1 (SPY $126.15). Markets are now up on the week.

I hope you won't consider me unpatriotic for having flattened my long positions on the open.

I'll get back into the game soon enough, but first I want to assess the impact of this "game changer" on market behavior beyond the initial reaction. My advice if you don't like what you see - throw a TARP over it comrade.

Ex-Post Capitulation Capitalism Indicator Update: (Ref.)

Reading:

o Politico - TARP Summary
o Politico - Paulson Plan to Cost $1T
o Quant Edges - "Big Ass Reversals"
o Reuters - Treasury Backs Money Markets

11:40AM PST: Has anyone noticed that the US Dollar is down -1.12% (UUP), Gold up +3.10% (GLD)? I tried shorting GLD yesterday, no dice -- hard to borrow.

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