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May 28, 2008

Penfold's Bin 707

Well, today was about as eventful as a 7th-inning stretch. Precious metals did nothing, oil recovered $2 which after yesterday's drop is nothing. And equities bounced around within a half percent of even all day. The daily charts of the S&P and NDX still imply a bigger correction is in store. However, the intraday patterns appear to be sporting nice bases that could carry prices higher over the next day or two. The line in the sand for the S&P is 1407, which has been an important pivot point both recently and for some months. If a greater decline is in store, bears are going to have to defend that level.

In short, if shares do rise to that level in a non-impulsive manner, I'd be looking to add a bit to my short bets. If 1407 is decisively broken, all bets are off until I get a better handle on things.

Sorry, no charts today. I'm doing a quickie post and then getting back to the more important task of cooking a monster pile of spare ribs for my guests today. It's my birthday, and my treat (other than the ribs) is a bottle of Penfold's Bin 707, a superb cabernet from Australia. Gotta live a little!


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