Bears caught a breather on Tuesday when the broad averages fell medium-hard after inducing two days of short-squeeze pain. It was hard not to notice, however, that the good guys failed to press their advantage when they had bulls on the run. The futures closed only moderately lower as a result, leaving some in the Rick’s Picks chat room lusting for more blood (which, I hardly need point out, is the only way the U.S. economy can ever return to health). Will the tempo of the selling pick up on Wednesday? My gut feeling is that it will take some sort of threatening development on the news front to make this happen. Otherwise, the lunatic stocks that typically lead the broad averages higher, especially Amazon, seem apt to resume their blithe-albeit-doomed bounce from January’s oversold lows. From a trading standpoint, this vehicle looked like a coin-toss Tuesday evening. The futures would need to exceed 1881.50 to the downside to offer any further encouragement to bears. However, if they were to trip a ‘counterintuitive’ buy signal at ‘x’ like the hypothetical one shown (see inset), I’d say go for it, since odds of a profitable move to p, at least, would be highly favorable at that point.
