TCM Notes : 5/13/09

• According to IBD the Nasdaq chalked up another distribution day Tuesday. That brings the total to 4 for the Nasdaq. 3 of which have come within the last 6 sessions. It has also been struggling around it's 200dma recently. Dow remains at 4. SP500 at 3. NYSE composite at 1.
• The mid 1970s stagflation scenario is starting to circulate around again as oil and gas have traded higher recently.
• AIPC saw a heavy volume sell off today as it broke down through the neckline of a head and shoulders top. There's a gap between 16.84 and 18.50 it could potentially fill, but the 200dma rest at 21.37. It could see support at those levels.
• Eliot Spitzer was on Rachel Maddow. He said, "Wall Street failed this nation." I'm sorry are we to listen to a man who has no integrity? I say greed and a complacent regulatory body failed this nation. I say the revolving door between boardrooms and Washington, D.C. failed this nation. I'm all for second chances, but give me a break. What's next is John Thain going to replace Bernanke as the next Fed chief? I swear sometimes the American public has a shorter memory than wall street traders. And that's saying something!
• Secondaries and debt issuances are starting to put pressure on the market now. These guys are hitting the tape while there is interest to absorb it. This should serve to dilute earnings going forward, but it will at least alleviate worries about capital adequacy as we continue to navigate the uncharted waters. This coupled with a bit of a news vacuum could serve in giving us the retracement that so many would like to see. The 9 and 20dmas continue to offer strong levels of support.