Market Update

Right now there's 1 min accumulation in the IWM and DIA, SPY and Q's aren't confirming accumulation, but mostly in line with price.

The question remains whether HFTs have any control over the market anymore or not and even if they do, can they keep up with the news coming out. for this reason, I would conservatively continue to add to shorts you like or that are in good risk:reward:high probability positions. The first move down will be a big one, but there will be a few days of consolidation where you'll want to start loading up. It's always the first 10% or so that is the most dangerous and in most markets I largely sit this area out, and let others try to pick the exact tops, but I'm here to provide a service-I just want you to know that if you are not fully stocked and there's a big move down, you'll have plenty of chances.

Today was going to be a good day to see what the market has in the way of firepower, unfortunately the Japan situation has skewed the market from Asia to Europe. Any strength today would be a very solid signal, although after Japan, I wouldn't expect to see much.

The Japanese situation really hurts Europe and that can be seen this morning in the Credit Default Swaps for the European PIIGS hitting highs we haven't seen. It seems like Europe's hopes were washed away with the Japanese Tsunami. China has their own problems, but they also have their own agenda "Global Domination" (with a Dr. Evil accent). No really, they are looking to establish their currency as the reserve currency and may see an opportunity in Europe. This year could be interesting as old friends may find some new friends that aren't really our best friends.

For now, I'd keep an eye out for the trades you like (email me for confirmation) and make sure your risk management is wide for now. The great thing about shorting is that you can make more then 100% and you can use profits to pyramid up winning positions.