It is becoming more and more clear to me that these indexes are buying time for now but i am starting to really get bearish again on stocks. In my humble opinion, it's only a matter of time before the "FLASH CRASH" range is broken to the downside. Under the surface the movers to the upside look timid and very sluggish. Majority of stocks i track continue to BLEED AWAY. They are not selling off hard but slowly and surely bleeding away. This is very bearish as the sellers are slowly but surely unloading WITHOUT any sign of "panic". NO panic means more selling to come and buyers will continue to be gun-shy. The enthusiasm to get long, buy dips or chase breakouts is NOT there right now. The clock is ticking away and in my opinion time if running out for the bulls. Once volume returns back into this market, i expect it to pick up to the downside.
Keep positions LIGHT!
Stay NIMBLE!
CASH IS KING if you are not comfortable working with this tape(not many are).
1 comment:
I myself am short copper, which is used heavily in housing and telecom projects. I completely agree that there is no recovery; they cannot re-inflate the bubble. Deflation is in the cards, and I look for Big Ben to hit the big green "Print" button on his desk. Beware if you are in any way long the USD.. http://themeanoldinvestor.blogspot.com/2010/06/bens-migraine.html
Post a Comment