Another Close Encounter

"I know this sounds crazy, but ever since yesterday on the road, I've been seeing this shape. Shaving cream, pillows...Dammit, I know this! I know what this is! This means something. This is important."
--Roy Neary (Close Encounters of the Third Kind)

Once again, it was close but no cigar as the SPX once again challenged the 1225 level but could not decisively break through.

Today's challenge was largely mounted on the back of a late day surge on news that the EU was getting set to ban naked CDSs.

Since last weekend, I've been visualizing a 'pop-and-drop' scenario that would mirror the 'drop-and-pop' event from a couple of weeks ago. A sort of poetic symmetry that would appropriately reflect this fakakta market.

Was thinking that a driver of the 'pop' could have been Apple (AAPL) who reported earnings tonite after the bell. Alas, it looks like AAPL's results did not measure up, and there is selling pressure in after hours trading.

We'll see what tomorrow brings.

Should we happen to get some strength, I plan to shave some more CSCO long and put on some more SH short to hedge my current stance.

position in CSCO, SH