US Stock Markets: One Of The Worst Week Openers

Seems as though I’ve caught the flu (at least that’s what I’m hoping, for if it’s Mono, I’ll be pissed) and will probably be put down for a couple days.  I slept pretty much from 6 until about now, and I still feel a tad left of atrocious.  Many apologies for pretty much disappearing today!

In other news, the market regurgitated all the bad things that are going on today (Tuesday), opening up with one of the worst week openers I’ve seen in a while.  If we’re going to start getting into those “Monday Annihilation” patterns that many of us witnessed and complained about back in the fall, we might as well hold inverses over the weekend just to prepare for down week opener days.

Let’s face it: today was the market spitting in Obama and his cabinet’s face.  As I’ve been preaching since December 24, the banks are ridiculously insolvent and they will continue to be like this until one of them is forced to file a Chapter 11.  This would be a devastating blow to our economy due to the amount of money we’ve been pumping into these trash heaps just to keep them going.  If you want to see the House of Cards topple almost as quick as humpty dumpty, however, watch what happens when one of them files for bankruptcy; one goes, they ALL go.

Today’s action in Direxion Financial Bear 3X Shares ETF (FAZ) and UltraShort Real Estate ProShares ETF (SRS) could have made anyone rich if they felt the need to take a large risk and hold them over the weekend.  If you’re long any of these names, you’re making some serious dough.  If you’re like me, however, and swing trade them, you didn’t really do much today at all unless you bought them at the open and sold them at the close.  Because of the recent action in SRS and Ultra Real Estate ProShares ETF (URE), however, the Bulls vs. Bears edition of this ETF/iETF pair will have to wait until the weekend!

I am in full cash right now because I don’t want to get stuck on the wrong side.  I stopped out of my PowerShares DB Crude Oil Double Long ETN (DXO) @ $2.25 (after cancelling my additionally 10% I was going to add prior to the open) and iShares Dow Jones US Oil & Gas Ex Index ETF (IEO) @ $37 (I bumped up this stop, foreseeing that today was going to get ugly).  I love being 100% cash right now, for I can do whatever I want and don’t need to feel compelled to buy.

At this stage of the game, however, the iETFs are beginning to look a little overbought, so I may have missed this time market annihilation and I may have to wait until we see a bear market rally, in which I will buy a large quantity of Direxion Small Cap Bull 3X Shares ETF (TNA), Direxion Financial Bull 3X Shares ETF (FAS), and a couple of other ETF names that will move like the dickens.  To be quite honest, I would not be surprised too if we ended in the green tomorrow!

For now, I’m going back to sleep.  I will leave you with an S&P 500 (^GSPC) 20 Day chart and a good night from MJTT!

$SPX  20 Day

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