1. GS beat and looks like a good quarter all around, Stock trading up almost 2.00 in the Pre-market…..Not that impressive, IF GS FAILS WATCH OUT BELOW……remember JPM and BAC opened up and then failed last week…..
2. HOG, Harley-Davidson missed and guided down for motorcycle shipments for the year (basically lowered the lower end of the range)….stock trading down 1.5% in pre-market, this stock should remain under pressure throughout the day in my opinion……If this thing falls apart you could see some other consumer discretionary names come under pressure……
3. Market did what It needed to do yesterday, put a little fear back in to some very complacent market participants……I think without that we might have been headed for a similar sort of event that we saw in early May last year…..THE DREADED FLASH CRASH. We still may be as we get closer to mid to late June, I remain very Bearish and think that any sustained rally can only come from more goofy Govt intervention……thats not my idea of investing for the future…..
-I would expect a test this week of yesterday’s lows and a close below 1300 in the SPX would be very bearish, probably means a test of 1250 in short order….[/private][/private][/private]