27 February 2007

Who's Got Balls?

So futures just getting crushed with the $5 Dow down 98, S&P - 13.50 and Naz - 29. Durable goods numbers a whopping -3.5%, about twice what was expected...can anybody say recession?
Now the argument the bulls will declare is that the recent economic numbers dictate a Fed rate cut somewhere down the line, with the odds of a June rate cut doubling overnight, they may be right...but that won't help them this morning...
Not sure I can easily stomach pressing weakness here as support levels that eager bulls have been watching have arrived a week or two earlier then probably expected.
My gut tells me too fade here, so I'm looking at some near month calls in some beaten-up names, namely Merril Lynch which will be amazingly oversold on this weak open...so I'll be watching for panic into the $85 level throwing some money at the 85 March calls for a quick and what I hope a dramatic flip...see you in the shit...jfg.

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