No need to put up any charts tonight. I may be a bit slow, but I think I have it figured out, finally. The market is now 100% driven only by the temperature in Japan's nuclear reactor cores. Temperature up, market down. Simple as that. Nothing else matters anymore. Earnings, yield, sales, supply and demand, forget it. The entire fate of the global financial system now hinges solely on three overheated reactors. halfway around the world.
If there's yet another news report of "another meltdown" tomorrow morning, whether it's true or not, look for another 300 point drop in the Dow. When the reactors are all finally secured, and one has to believe they eventually will be, then the market will go back up.
I'm not even going to bother pointing out any of the positive technical signs I see right now. Three times bitten, four times shy. But I'm also definitely not throwing in the towel either. Every single time I've done this in the past, the market was up big time the very next day. I'm not falling for that one again.
And whenever the VIX hits 30, I always go on vacation. That's one of my rules. I'll be back when some semblance of sanity returns to the stock market. Life's too short to play this bizarre Kafkaesque game.
Good luck to all you traders out there and deepest sympathies to all the victims of the earthquake and tsunami.
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