Late Rally

by Larry Levin

The first half of the day was sluggish. It was a two-sided sided traded that looked like it might continue into the close doing its Rip Van Winkle impersonation. But the heretofore Dr. Doom economist saved the day. Nouriel Roubini was bullish, which surprised the hell out of everyone, and the market ripped higher in the latter half of the day.

In a speech this afternoon Professor Roubini was "quoted" (this term must be used loosely here) as saying the recession will be over soon and from here on out it will be all sunshine and lollipops for everyone. With that the markets rejoiced, driving the S&P500 up 14.00 points on these comments alone.

Oh yeah, the media couldn't get enough of it. It was reported on every major financial network. "The end is nigh" they said, for the Dr. Doom has seen the light.

Umm, problem. This evening Dr. Roubini said that the media's characterization of his comments was the usual Pollyanna bullshit; he never said what they reported. They reported what they WANTED TO HEAR - not what he said. "It has been widely reported today that I have stated that the recession will be over 'this year' and that I have 'improved' my economic outlook. Despite those reports - however - my views expressed today are no different than the views I have expressed previously. If anything my views were taken out of context...Simply put I am not forecasting economic growth before year's end."

How do you like the way the media plays for one team, the perma-bulls, and not the truth. By hook or crook the Happy Talk crowd is determined to convince people that things are not so bad. The fact they're finding it necessary to lie so much about it makes me worry it's even worse than I think it might be. Oh well, when money is on the line, you can throw journalistic pride in the crapper.



Previous Day's Trading Room Results:

Trade Date: 7/16/09

E-Mini S&P Trades*
(before fees and commissions):

1) OTF sell @ 11:00am at 929.00 = +2.75 (1 lot)

2) Engf sell @ 12:00pm at 927.75 = b/e (1 lot)

3) Pivot point sell @ 1:40pm at 935.00 = +.25 & -.50 (2 lot)

4) FT buy @ 2:50pm at 937.75 = -1.25 (1 lot)

5) Algorithm positions (11)

6) "Reading the Tape" positions (2) ...combined Secret's, Algo, & "Reading the Tape" total...+10.75


Electronic (YM) Mini-Dow:

1) None today



Sign up as an AvidTrader Member to receive "The Technician" Value Area's each day. The market then has an 80% chance of filling the Value Area. Many traders familiar with the Value Area and the techniques that go along with it use it to help them decide what trades to do each day. Join and see how this technique can help you trade more successfully!