Surfing the Neck Line

So California’s IOUs are going to be traded? Seriously?

So does that mean that CA now kind of has its own currency? Seriously? I don’t live there, but can someone tell me if you can now buy milk with an IOU?

IOUs pay 3.75%? If they move the decimal one place to the right I might get seriously interested in buying some!

While everyone and their neighbor’s squirrel is watching the neck line in the S&P500 at around the 880 level (which has been violated at least inter-day) I thought I would pass on some humble thoughts on some of the stuff I have been watching.

1) The oil bull seems to have already laid down his sword and is now having a schizophrenic argument with himself as to whether he is the new world reserve currency or a commodity that no one wants. Seems he is in the depressive part of his manic depressive cycle. Likewise the bulls in the whole commodity/materials complex seem to have taken very heavy fire from the bears and are in broad based retreat.

2) The oil bull was guarding the left flank of the great golden bull and basically opened the door for the enemy and put him on the defensive for now. I may have to update my wave count soon :(.

3) I trade the Canadian financials more than the ones in the US, and many were actually flirting with the bottom of their trading ranges BEFORE this whole mess started up till a few days ago. So if you have been on a mountain top in Tibet for the last year and you own the Royal Bank and you just got back, your account is probably flat and you are wondering what all the commotion is about. To quote TG WHAAAAAA!!!!! Uber overbought or just plain solid????

4) So is it the financials that are holding the market up? Seriously?

5) I noticed that the bears brought up some artillery and started shelling the financial complex Wed. It looked like we were about the take out a trend line before the bulls called in air support at that end of the day.

6) Anyway I am watching KBE closely, because if the bears can carpet bomb this sector and it lets go to the downside maybe we will see some fireworks!

Happy trading all and have a fabulous weekend!