The Deep End of the Poole
Is today Flag Day?
The opening bell tolls and another week of madness has officially begun. St. Louis Federal Reserve President William Poole hit the tape with cautionary comments on FNM and FRE saying "should either firm be rocked by a mistake or an unforecastable shock, in the absence of robust contingency arrangements, the result could be a crisis in U.S financial markets. That comment (among others) is spooking the financials and that leads us to a very important question--what kind of name is Poole, anyway?
My trading eyes are monitoring this complex as I consider them the most important group for the market. BKX 700ish is the February lows and the last technical stop (more or less) before the October lows come into focus. Away from that, the morning breadth is firmly stank across the board, the dollar continues to act heavy, oil is firm and our levels are in the process of being probed. The bulls are trying to toe the lines but, most likely, their shoulders are beginning to get a bit crowded.
For purposes of full disclosure, I added some defined risk downside puts (out to April) in a handful of financials on the opening. I typically hate shorting down (or buying up) but by I wanted to slowly scale back into some short side exposure and purchased partial positions. As an extension, I've dusted off the bear costume and Boo just brought it over to my desk with an "I told you so" look.
Don't be smug Boo--if you don't stay humble, the Minx will do it for you.
I'll be back.
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