Bazinga! How did you like them markets?

We really didn’t know how to title today’s report after the action we saw so we decided to just use Sheldon Cooper’s line when he tries to make a joke. And today was a joke. Just another example of the GRM as markets gapped up on supposed ECB money printing but reversed on volume when it came out German banks do not want the money printing. Nevertheless, taking away all the noise, a lot happened.

Discalimer time: No matter what we write, if more announcements of QE come out, the tide can turn in a nanosecond. Time and time again we have seen V -shaped moves back up as the GRM continues to hold sway.

It is usually not a good thing when you have vicious reversals to the downside. It indicates big money selling above these levels. But that’s not all. As we told you coming into their earning’s week, financials are acting poorly and today’s action did not help. Maybe the earnings will change things. It is also less than thrilling that the Nasdaq, Ndx and the S&P sold hard as they were trying to get back above the all-important 50 day average.

To add just a little more ugly, the semis broke back below the 50 day making a series of lower lows. Housing stocks, which were emerging, sold off hard on some bad earnings news.

So….bazinga. There is little way to game a spastic market like this except to take your time, lower position size, close your eyes, hold your nose and pray.

To be blunt, any more deterioration at this important juncture will only make matters worse.