SPY End Of Quarter Markup

Should we be so fortunate as to have price bid up again Wednesday on declining volume, we’re looking at a premium short setup. Idea is entry above $130 with a stop in excess of $132. Watch for fear to come back into this market and -DMI possibly achieving a reading of forty sometime in July, as we wrangle about the debt ceiling. Think $125 as a target is not unreasonable. Already leaning short and would welcome this opportunity, likely in the form of SPXU and TVIX. Remember we have a three day weekend upcoming & good luck.

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Get Up, Stand Up

It has been a long time coming, but I spend an enormous amount of time computing, and being seated has begun to take its toll on me. A few months ago I read an article over at Lifehacker about the benefits of standing up. It made a lot of sense to me. The human body is not designed to be overly sedentary. Let’s face it, we really shouldn’t be seated for more than a few hours per day.

So, I set about making a change. I found an IkeaHacker article that seemed attractive, and just while I was about to make the trek over there to find a solution, I realized I could more easily pull this off with a series of cinder blocks from Home Depot. It’s not very elegant, but HD is literally 3minutes from here, and for dirt cheap I could figure out if I enjoyed standing, plus other details such as exactly how high I wanted the table top.

It took a few hours to deconstruct everything, clean, and then rebuild. I’m definitely liking it so far. The first few days felt like those leg burners at the beginning of the ski season, but I can already feel that discomfort wearing off. I did go ahead and pick up a stool from a nice lady on Craigslist because, just as you shouldn’t be seated all day, you needn’t be standing either. For now I’m having to rest every couple of hours. I suspect that might extend to 3 or 4 once I’m better conditioned. I felt it also necessary to grab a soft mat to stand on. Carpet alone is insufficient.

One other tweak I’m considering is raising my monitors another 6inches or so. I’m still looking down on them by approximately 15degrees when staring at their center, and ultimately that zone should be at eye level. I might be agreeable towards a wall mount at some point if I can find the right hardware to make it happen.  As for table height, I’m six feet tall and finding that 44inches is perfect in terms of keeping my elbows at right angles while typing.

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Countertrend Rally Underway

The bounce has begun, with S&P futures rallying overnight, presently up about 7pts.

Here is a look at the falling wedge setup going into Thursday’s session (SPY 15min) :

click to supersize

This guy laid it out nicely – Zortrades.com : Bounce or Flash Time For The SP500

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US Dollar Revisted

Up until recently the dollar has been falling with the overall market. Today it reversed, and we could very well see an acceleration in equity hurt if this USD bounce continues..

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Gasoline Price Inelasticity

Been watching gasoline outperform crude for months, looks like somebody else has noticed:

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WASHINGTON, May 6 (Reuters) – U.S. Attorney General Eric Holder on Friday directed a special task force to look into whether gasoline prices are falling in the wake of the drop in oil prices and if not, whether it was because of fraud or market manipulation. “If wholesale prices continue to decrease, fraud or manipulation must not be allowed to prevent price decreases from being passed on to consumers at the pump,” Holder said in a memorandum to a special task force working group set up to probe possible fraud and manipulation in the energy markets.
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The irony here is the finger pointing at so called ‘speculators,’ when in reality it is the Federal Reserve and its easy money policy which is the primary cause for a dramatic run-up in all commodities. That being said, gasoline has been particularly strong on oil pullbacks, and during rallies it has been taking the lead.


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