What Can I Say?
What is there
to possibly say about this market? Any attempt it makes to rally is
immediately squashed in a massive flurry of selling.
The VIX
(
$VIX |
Quote |
Chart |
News |
PowerRating) keeps climbing towards 60, which has marked major bottoms in the
past. Currently, it stands around 51. The Put/Call ratio has spiked above 1.0 on
occasion, but it remains at only .76 as I write this. Bullish advisors have
taken a backseat to Bearish advisors as the spread widens. Ultimately, price and
volume will be the two most important indicators to watch. All of the previously
mentioned “secondary indicators” provide for a quick interpretation of
how long market conditions may last.
Price and volume is the only true
indicator that we can rely on, because it is too hard to hide institutional
involvement. Whenever we are talking about the “M” in Market, it comes
down to this piece of evidence. Right now, all of the current evidence has been
of distribution and that has driven us to the sidelines. Each day, I am taking a
look at the market and waiting for signs of accumulation. I am also continuously
searching through the stock market for leading companies for the time when our
evidence of accumulation arrives.
Right now, there are very few names
that are ready to blast out of sound patterns. A base can be completed very
quickly, but for the time being, there is nothing to drool over.
Until Thursday,