We’ve gapped up 4 out of 4 days this week, with yesterday being the only one that was quite small. However the past two days we’ve sold off to turn red late in the day. In fact, Tuesday we sold off from the highs (+2% to 1%ish gains) after Steve Liesman told us not to get ahead of ourselves. So that’s really 3 days in a row that all the positive action was in premarket and most of the daytime action actually stunk. Kind of reminds me of a period in 2010 where we gapped up 4 out of every 5 days (not as by large of an amount as we have this week) and then would either do nothing all day (go sideways) or sell off during the actual market action.
It continues to be a market that really stinks – you are guessing each day what the gap will be, based on some news event no one can predict. Today was especially troubling because many of the leadership stocks were weak all day. If it’s a hedge fund blowing up – who knows. But you don’t want to see the generals cracking.
For all the bailouts, and handouts, and votes, and European breathless headline watching, and CNBC coverage, we’re right back where the market started Monday morning on the S&P 500. Oh joy.
Keep in mind next week is back to economic news in a heavy fashion with Chinese and European PMIs, US ISMs, and the monthly employment report. I don’t expect great shakes from this data so we’ll see what is “baked into the market” already.