Today is a classic monster gap up off a weak close. The odds of a continuation higher off the gap up are high. I would not be sucked into selling the gap up. The move looks like the real deal and the European markets are suddenly made of Teflon. European equities look totally sold out and there are no bulls over there. Absolutely none. The sellers have done their deed and with the deep values in Europe, I don't see it going below the lows it made last Friday. Finally heard CNBC pundits get nervous about China and a hard landing. It's about time.
If we are going to get a catalyst to take this market lower, it will have to come from China or the US. Most likely it will be China but I think that hurts industrial commodities more than US equities. Copper will perform the worst of all the commodities. The hoarding of copper in China was plain silly and the reversal of that will make copper prices nosedive.
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