Can We Get a Bounce?

So, we open down. We then either have a successful retest and we get all excited and rejoice again like on Thursday or we fail until we bounce again and then the bulls come out and say, "We had a successful retest." The idea that the bulls ever go away is simply foolhardy. There are too many bulls and too many people who need this up and too many people who believe it has to happen.

Also, there are many people who want in because every time we get there, we have a whoosh and no one can afford to miss it. Too much performance.

This is the enemy of where we have to go because the one thing of which we are certain, something that is true for everyone from Intel (INTC - commentary - Cramer's Take) and Cisco (CSCO - commentary - Cramer's Take) last week to Lowe's (LOW - commentary - Cramer's Take) this morning and likely Home Depot (HD - commentary - Cramer's Take) tomorrow, is that the economy deteriorated markedly in the last week of October, which produced the horrendous and dire forecasts we got from Target (TGT - commentary - Cramer's Take) and Lowe's.

As is always the case in this market, the fundamentals mean nothing to the bulls; all that matters is the technicals and a macro view that things are going to get better because LIBOR is down.

Meanwhile anything like the collapse in commercial real estate, the elimination of the asset-backed market, the almost endless decline of oil (with a few spikes up), the total cliff jump of commodities and the elimination of the U.S. auto market mean nothing. They are just stepping stones to the technical levels for which we salivate.

It is so easy to be a bull here. All you have to do is say, "We can and have rallied, and you should stop worry as we will hold the levels and you will be left behind."

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