Fast Times at Wall Street High

"People on 'ludes should not drive."
--Jeff Spicoli (Fast Times at Ridgemont High)

The intraday moves continue to be eye popping. Deleveraging combined with high frequency trading is the likely culprit.

Currently, this is the consummate 'fast market.' Intraday range on the SPX has been about 50 handles today...

During the earlier lift, unwound much of my long exposure that I bought in the hole yesterday. Still holding some Microsoft (MSFT) and Merck (MRK) that will be held for sale if prices continue to firm.

My sense is that if prices don't squirt higher pretty soon, then very near term oversold conditions may be worked off as a function of time rather than price, and we'll head toward SPX 1125.

Even if we should we rally back up toward SPX 1225, Boo the bear will likely lean against this level pretty hard.

positions in MSFT, MRK, SPX