Fox News Yesterday night in CA

I missed the Oscars because I took my kids to skiing near the local mountains and I forgot to adjust the DVR. We got home a bit late and totally missed the whole thing. It sucked. So, I was watching Fox night news to see who won. The CA bankruptcy news was discussed at the middle of the Oscars, boy it was odd! Apparently S&P has 33% chance to lower the credit rating of CA in the next few months and the state has to cut about $20B in spending or it will run out of money by July unless Fed extends some emergency credit. What an awesome injection of bearish sentiment in one of the most cherished evening! Now this has to be the latest possible news to the public. I am almost certain that a debt extension or some sort of new debt is guaranteed when you know the news hits the mainstream media like this. If so, probably we just discounted this news as well in January. In the weeks ahead, expect "CA is out of bankruptcy risk!" news related surge, or perhaps a top... But certainly the news that is out there is really bad and the prices are climbing the wall of worry. Call me in denial of the reality, but I am just trading the market parameters... Even though I expect a pull back for 9 more sessions overall until FOMC, I expect a higher close for the month. Best of luck!

BTW, I see the new support around 1120-1125 until it is broken.