Thursday, October 22, 2015
I guess yesterday's US market dive was the result of all that Valeant bullshit. It was funny to see Zerohedge post a list of all the other companies that Ackman owns, and then see that followed up by selling in those companies. Yes, let's sell things owned by Bill Ackman! Because reasons!
The question is, does the market use this Valeant bullshit as an excuse to begin rolling over? Here's SPY:
The chart does look like it wants to roll over. There's your dumbass resistance line that Whitey is always fixated on, at about $203, and there's SPY turning back at that point. MACD is turning down, RSI(14) turns down at 60... seems like a perfect setup.
Then again, the EZ is threatening further QE, which would be a good way to provide a boost to world consumption. In which case there's no reason to sell the US.
Well, I guess the test will be whether SPY turns back up at the EMA(10), in which case this was just a bit of healthy consolidation. Maybe SPY even drops as far as the SMA(50) or the Bollinger mean - I mean, you can't stay 2% above the mean for 2 weeks straight without some massive buying strength.
Oh well. Only one bit of news today, and it's Schadenfreude:
der Spargel - Germany used slush fund to win World Cup bid. Yet another example of the rampant corruption at the heart of the German economy. My god, they're more corrupt than Greece!