US Trade Deficit Widens To 49.9B Highest Since October 2008 (Obama)

Just when you thought you had the market figured out you get a slap across the face.(buy low sell high?HA) The market is the great equalizer, those who got bullish into the wave of buying yesterday were greatly disappointed when they rolled over to check the futures on their mobile devices. Like i said yesterday traders were taking on premium in VIX and VXX as we could not get above the 113.20 level.


"More economic uncertainty", why the hell do they put out these headlines... like the uncertainty has not existed prior? With the US trade deficits widening to 49.9 billion it appears Obama is doing a great job along with his crack pot financial cabinet.  I was not holding anything overnight as i kinda suspected the jubilation would be frowned upon by the market gods. A great way to limit your overnight risk is to get FLAT at the end of each day where the market is resting up at inflection point.




The chart above highlights the push from June lows up to July highs. What i want you to focus on is the red arrow at the top above the red line, it looked as if we were going to break highs above this level after some better than expected economic numbers. PSsh.. we never looked back, that was the perfect opportunity for the smart money to sell into jubilation. Now i suspect the smart money is covering a bit after a huge move like we had today. Remember sell rips by dips... Notice the Volume AT Price bars up near resistance, this shows in a profile view where the volume lies at price.

Posted in: Market,SPY