One Way Wednesday – Super Market Ignores All Negatives

Even though I was just on TV yesterday with bullish bets and saying that we may be in the early stages of a mega-rally, this morning I woke up and saw NEGATIVE GDP numbers in France and a 0.1% gain in Germany (vs 0.3% expected) with a revision to their Q4 to -0.7% (from -0.6%) on the heels of their ZEW Investor Confidence Index coming in at just 36.4 (with 40 expected) and JPM and BAC cut their forecast for China's GDP and HBC is cutting 14,000 jobs and IDC cut their IT spending forecast by 10% and Mortgage Applications fell 7.3% and lumber prices are falling along with rebar and rubber and oil.   

So, silly me, I concluded it would be a good idea to short the Dow Futures at 15,175 and I put out an early morning Alert to Members at 4:26am and I tweeted it out in case anyone missed it.  Well, the Dow did fall – all the way to 15,150 and, while we're not upset about a $125 gain per contract – that was it (but we do have a chance to short them again on the bounce at least).  25 points out of 15,175 is 0.16% – that's how much of a pullback all that bad news hit us for in the Futures after the Dow has popped 500 points in the first 14 days of May (see Dave Fry's NYSE summation chart for overbought status).    

“Of most significance today is that there is a welcome change in the economic outlook,” King said as he presented his 89th press conference at the central bank in London. “This hasn't been a typical recession, and it won't be a typical recovery.”