It was such a tough tap, even if you were luck to be right for a moment, the profit quickly turned into loss.
Overall, it was ugly, there is no other way to put it. all major indexes are at the support level, any more downward move from here is considered breach of the support, technically, there is nothing more serious than this. The only consolation is the volumn was relatively low, so, maybe the big guns simply hold their fires before the job report tomorrow.
The $VIX jumpped more than 2 points to 27.55, it is high but far away from 37 achived January, one thing standing out in this tumultous time is the lack of fear. People just hope for a quick V turn.
This makes tomorrow's job report important. we need a strong job report to support the market.
However, it is hard to predicate how the market is going to react to the news, today's news was not all that bad, retail sale was good, initial claim was not bad, yet the market simply ignore them and focus on the negatives. forclosures, defaults etc..
Ok, what we do now ?
Even though, we are approching the lows of January, there is no extreme readings associated with this downtrend. VIX, RSI all in a whimpy state, signaling neither buy nor sell.
It might be too late to short, especially, we are just two weeks away from rate cut.. you never know what Benake and Co is going to do...
There are a lot of good stocks are coming down, so, maybe it is a good time to do some bargain hunting. compiling a good list of stocks that holds really well, if there are any reverse, we could get in/out quickly to have a few quick bucks.
Commodities, if what we read is right, I would still put the money on the hard assets, DBC actually went up today. this is because, there is imbance of supply/demand, that is why the inflation. secondly, Dollar's slides, thus, make hard assets worth more.
Anyways, be judicious, this market needs a lot of our attention.
