John Tortorella Reacts to Market Action

The $SPX has broken below the 1340 level and the bears are temporarily in the driver seat.  As noted in the weekend post, option expiration weeks can be very directional and the first couple days of the week are often a tell.  At this point the market is signaling that it wants to auction lower.  Obviously, news can change everything and the ECB meets tomorrow.

The “Bernanke Pattern” is still technically valid.  This should serve as a reminder that analogs can serve as excellent guideposts but can also get you killed if you treat them as gospel (or ignore risk parameters).  Listen to what the market is saying now — not what you want to hear.  Volatility and uncertainty remain high so it’s best to give the market some room to breathe on the downside or adjust your position sizing.

Meanwhile, John Tortorella gives the bulls a piece of his mind:

More Tortorella gold: John Tortorella: Post Game 6 5/9/12

Must Watch: John Tortorella “Next Question” Mix by DJ Steve Porter (HD)


Disclaimer: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please click here for a full disclaimer.

blog comments powered by Disqus
Dynamichedge Blog