19 November 2012

SP 500 and NDX Futures Daily Charts - Bounce off Short Term Oversold

"The filing of this lawsuit now by Weber officially begins the raging clusterfuck portion of the story, as he and his lawyers are releasing lurid details not only about Kotz and Maloney, but about a host of other SEC and SEC IG officials. It's very strong stuff: the only things missing from this lawsuit are tales of SEC officials running white-slavery rings and snorting brown-brown off the corpses of strippers with West African rebels."

Matt Taibbi on the Developing Sex and Corruption Scandal at the SEC

As noted last week the stock market was approaching ridiculously oversold levels at least for the short term and was due for a bounce.

The speculation about a possible interim deal on the fiscal cliff is just that -- speculation.

I firmly believe that what we saw post-election was selling for tax purposes. And it may not yet be over. We will have to see if these rallies are met by fresh selling and profit taking.

I am disposed to think of a range bound trade into year end, 'unless something happens.'