Fat Lady Warming Up ~ The Risk Averse Alert

Monday, November 14, 2011

Fat Lady Warming Up

We're right on the edge. Capital spent manufacturing early-October's massive short squeeze targeting the hopelessly insolvent might have a few days more remaining to be recovered, as a still positive technical bias but awaits the materialization of weak hands itching to plow their nickels into such high-priced toilet paper as are equities these days.

Yet weak volume rather suggests the wait for suckers might prove in vain. So, possibly the best to be had is suspended animation before the floor gives out and, wha la, October lows challenged.

SPX 1-hr

Then again, the floor could give out in a second and send the hopelessly insolvent spiraling into the abyss with all haste and commensurate calamity. With so many vulnerabilities portending a pulling in of horns and contraction, a fat lady's singing is the only thing right here whose certain coming is confirmed in a market struggling to attract a bid.

Fast Money
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