Cobra's Market View

Rumor of French ratings downgrade from major agency coming....

Unless Italian bond yields spike again I doubt the gap gets filled. 10 year yields down to 6.76% from a high of 7.48% yesterday.
Panic abated temporarily.

Read on Twitter that Italy canceled their upcoming auction...

Today is weekly options expiration... Ive noticed over the past couple of months that Fridays tend to trade in a range during the day as a result. I doubt we break above or below the highs and lows made in the first 1.5 hours. My bet is we stay between 1240 and 1254 on the S&P.

Plunging German manufacturing chart by zerohedge: http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2011/10/Gemran%20Factory%20Orders.jpg BTW for those that trade options OptionRadar on Twitter seems to be solid. He has a pay service but I havent done it and dont know how good it i...

Not my chart. Resistance at 126, supports at 125 and just below.
http://chart.ly/qf29p6q

$NFLX continues to trend up, call option volume going crazy. There was a huge 200k call option buy at the low 2 days ago.

NFLX calls anyone? Might have hit the lows... major call buying here per Twitter traders.

We may not follow conventional 2-3 leg down here even though the first leg was so powerful... reason is I think there was a mini panic related to Jefferies which seems to have subsided with the Jefferies statement release. Market should have been up today because of the rate cut, the drop seems to h...

Greece PM to resign. Ref to be cancelled. Rumor from over an hour ago. Spokesman came out and said not resigning. Use Twitter for up to date news, not news sites. you sent out a twitter reccs for news the other day. what were they again? thanks. @zerohedge @djfxtrader @breakingnews @omfmarkets @glo...

Almo99 wrote:Greece PM to resign. Ref to be cancelled.

Rumor from over an hour ago. Spokesman came out and said not resigning. Use Twitter for up to date news, not news sites.

Two things to worry about.... Greece has decided to put this vote up to the people whether or not to stay in the Euro and accept the bailout, or skip town, fully default, and go back to their old currency. The right thing to do is leave the Euro, but both options inflict a huge amount of pain on the...

Zerohedge reporting the referendum is still on contrary to prior rumors.... market tanked as a result.

You would think, but early reports are Greek people are pissed either way. It is like asking them if they want their arm or leg cut off. Most dont even understand the implications of the decision and of course would vote against anything leading to more austerity but in the end both endpoints inflic...

Market will jump if Greece confirms referendum vote is dead, but may tank if Greek PM loses power and govt changes. I think the former will happen but prob not the latter. Temporary bounce though, we're trending back down.

If you want the news as it hits the wire follow the appropriate people on Twitter. @zerohedge @djfxtrader @breakingnews @omfmarkets @globalcollapse (last one is me but I just retweet from the others for the most part).

Previous 3 days of SPY looks like an island top to me with a huge gap up, flat, then huge gap down with downward confirmation. Short term reversal of bullish uptrend, possibly long term. Lots of bulls trapped on that island.

I wouldnt call this a range day. We are down nearly 1% from the open and have given up all of yesterday's gains. If we had stayed between down .5% and 1.25% for the day then maybe, but we've broken below the initial range.

heavenskrow wrote:Guys the bond market is going almost parabolic.... someone knows something and wants treasuries

Yup, market reversal time. Fast and furious.

Movement at the end of the day had nothing to do with technicals, 100% to do with false rumors.
3pm: Guardian article about 2T bailout virtually agreed upon.
3:15: Merkel aid says no comment.
3:20-25: Source says amount not nearly 2T.
3:50: Source says rumors completely false.