The ES is trading down around 19 handles. The swine flu is rapidly becoming a major story. Here is a swine flu update. There are now 1384 confirmed cases:
"Key developments Sunday on swine flu outbreaks:
-- Deaths: 86, all in Mexico. 22 confirmed as swine flu, 64 suspected.
-- Sickened: 1,384 in Mexico, suspected or confirmed; 20 confirmed in U.S.; 6 confirmed in Canada; 13 suspected in New Zealand; 7 suspected in Spain; 1 suspected in France; 1 suspected in Israel; 1 suspected in Brazil.
-- Locations in Mexico: 17 states, including Mexico City, Mexico State, Veracruz, Oaxaca, Baja California and San Luis Potosi. Some, including Oaxaca, Mexico City and Baja California, have tourist areas, but authorities have not said where in these states the outbreaks occurred.
-- Locations in U.S.: 8 in New York, 7 in California, 2 in Kansas, 2 in Texas and 1 in Ohio."
Whats very strange here is there seems to be no major catalyst for a large drop tomorrow other than the swine story. There was a small World Bank semi violent demonstration in NYC. A few banks were vandalized but it was nothing major.
One theory that I have about tonight is we have over $100 billion in treasury auctions this week. The Fed in the past has been known to pull liquidity in order to force a selloff which then scares investors into treasuries. This would be a convenient way to easily sell the massive inventory of treasuries this week.
The Asian markets got this whole thing started. All of the major averages over there are down sharply other than the Aussies.
Could all of this be a headfake? Anything is possible and we have seen stocks reverse higher many times throughout this bounce after being down sharply at the open.
Tomorrow is going to be a real test for the bulls and their bounce.
You gotta think that a lot of longs that caught this move will be tempted to run for the hills and take profits tomorrow after a 25% bounce if this selling pressure continues.
All of the major players know that this rally is based on nothing. My main thought all along during this March bounce has been this: Once this rally runs out of fumes the reversal is going to be violent because their are no fundamentals to support stock prices.
Tomorrow is going to be very very interesting.
Check this out. This is the best rant I have seen in a long time. Max Keiser is dead on here. The "financial terrorists" must be stopped. There are a few pauses in between his quotes so make sure you watch the whole 8 minutes.