We're getting a gap down on the bad ADP jobs numbers but this market has ignored bad economic data and kept going higher. The Greece backstop is what this market wanted and it got it. Everyone knows the US economy is weak, so the data doesn't have any surprise factor.
That being said, we've got a strong bounce in this pathetic little downtrend, or you can just call it chop. It is hard to distinguish for most. Today's fund flows should be used to establish short positions. At around 1340, it looks like a good risk reward on the short side. The coming weeks in June will have many worried about the end of QE2 with all this bad economic data.
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Where do you see bullishness? ex the put / call ratio not much else suggest people are nuts out long and leveraged... end of QE1 = QE2 end a bit consensus, this market still hasn't really punished the bearish massess into throwing in the towel... still seems we are climbing the wall
Yes, there isn't much bullishness which keeps me from getting aggressive on the short side. But, the market meme is very much still buy the dip mode with lots of complacency. The data is getting worse and today seemed a bit like a Eureka moment when the masses finally looked at what is going on in the global economy.
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