For the past 3 months, I have been using Squeezy The Shark to amplify my point on levels for the pending short squeeze. Today, I'm putting Squeezy to bed and I'm going to start fading the Fast Money. I think the giant moves in this market (up and down) are behind us for now. Sorry.
Below I have outlined my new trading range. Be forewarned, it a boring one. I'm selling SP500 (dotted red) at or above the 916 level, and buying the 885 line (dotted green). Into month end, there are plenty of reasons for the bulls to support/defend 885 support. They better - it's the critical immediate term TRADE line. The Depressionista short seller of everything Q2 has plenty of explaining to do come Friday's close, and you can bet your Madoff that there will be plenty of window dressing before it's all said and done. There is no such thing as marking your shorts "to model" (at least not yet).
Note the lower-highs that we have seen in the last few weeks. The closing high of 929 on May 8th was an important one. That was a lower-high than the January 6th closing YTD high of 934. Be careful out there.
Keith R. McCullough
Chief Executive Officer