Checking in from the road....

Looks like a lot of gamesmanship out there today.
Don't get sucked in.

Be safe.

index bulls better dig in here. there are some pretty nasty looking reversals going on in strong economy stocks like CAT, UNP and NUE.

using GLG as a proxy for the gold group, it has some rising trendline support at about 34.50. it's also moving into the apex of a triangle which implies an impending break out or break down coming right up here.

in my mind, if the gold group fails, it'll fail not because of the absence of inflation but because of the drying up of liquidity which is at heart risk aversion. essentially, it's the same ailment afflicting the homebuilders, the rails and the oils.

i'm starting to wonder how many more reversal days like this the longs can handle.

markets that trade like this are under serious distribution and it's not from mom and pop. it's trading like some big firm or some big fund has a serious inventory management problem and are trying to extricate themselves from it by hitting bids on any rally they see.

the only way to cure it is to have a couple of scary looking down days and clean out the inventory all at once.

Good 10 minute interview on ROBTv with the chief NA economist from ML. ML's models currently calculate a 40% chance of recession in the US, and 80% chance of a slowdown.

Rosenberg when asked what investors should do, suggested scaling into US treasuries, solid dividend paying stocks (utils), and also likes healthcare.

Believes Canada can avoid a recession if the US goes there. Say's US is not a marginal consumer of Cdn commodities, but rather the health of commodities is linked to Asian growth. Concerned about US housing slowdown, and considers the Yen to be the cheapest animal out there right now. Believes we're in the period of "hardening arteries" at present, waiting for US rate hikes to work through the economy.

Worth a listen.

11:13 AM ET
Business Morning with Jim O'Connell
Assessing The Recession Risk

David Rosenberg, chief North American economist, Merrill Lynch

Tonight, Cramer roasted the CEO of BMY as the worst in the country, and called for his firing. He opined that the stock would rise from 21 to 26 when this happens.

Although a bozo, Cramer has a huge reach. I bet this will help move the board to remove this CEO, who has apparently messed up ten different ways.

I want to see what the price of BMY calls does tomorrow morning.