Anyone with a financial news source knows that "they" tried to bail out Spanish bank over the weekend. Why does the Clash's "Spanish Bombs" keep playing in my head? But I digress.
So what happened? Well, the predictable monster gap up across the Eurozone in stocks and the euro. Why the currency rallies on money printing is beyond me but that is what happened. The Spanish IBEX jumped 5% on the open but closed in the red. The RED! It rallied 5 bleeping percent but ended down on the day.
I am going to steal from my own blog, dated February 12, 2012:
Affection rejected
And it's effected
My affection for you
And the rest of your kind
Affection rejected
Just as expected
I'm rejected
I'm rejected
- Affection Rejected, The Records, 1979
You know who was rejected first? Did you read that Italy is going to be next on the bailout begging parade? Yep, the Italian MIB index was the first European index to move into negative territory on the day. It ended down 2 3/4%. That is jumbo per-taters, Emmet.
Now let's get to where most of you want to go - the US market. Sorry, globe, that's where my customers are concentrated. The Dow failed at resistance. The S$P failed at resistance. The Nasdaq failed.... You get the idea.
And while volume was still below average, the stench of failure was evident before the open. Dow futures were up some 170 points overnight but were up approx 50 at the cash market open. Tack on the "fair value" and the cash market was up close to 200 points overnight only to close down 142 at 4pm. Somebody get me a nose clip.
Should we dig deeper? Apple monster reversal at resistance and the 50-day average. And let's not forget the outside day reversal in the homebuilder sector. My Barron's Online column today was on that sector and I said it was going lower when I turned the piece in at lunch time. The ITB ETF was down only 2% then on its way to a 3.6% down close.
So Pepe, the market was Le Pew today.
Mr. Bernanke, your call.
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