This is how bad it has gotten! The pot calling the kettle junk! Confidence... confidence... confidence... That, my friend, is an echo.
—Moody's Cuts Ireland to Junk (CNBC, 7/12/2011)
How about a little short and technically sweet tonight?
Relative strength (top panel), having late-June positively crossed into buy-side territory (above 50), but reaching no extreme (above 70), now in balance with the sell-side (at 50) ... with volume showing no real urgency over the past couple days down — rather it appears risk's tender offloading to a diminishing interest continues, much as occurred during the recent moonshot — and then seeing momentum's trend (bottom panel, red) positive and rising ... things look up, yes?
Well, yes, but maybe not right at tomorrow's start...
This looks set up for a June 23rd-like capitulation. This afternoon's increasing weakness might reach a crescendo at tomorrow's open, then.
Forget not elevated hedging, though. Any rough start seems likely to be saved. Indeed, this would serve a predatory interest, too, at least for as long as those being force-fed are willing.
Pollyanna over at the Alan Schwartz Academy of Denial says no Lehman II, so I guess that's an all clear to the slaughterhouse, er, uh, I mean the feed trough...
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