Going back a few days, I commented on the fact that there was too much confidence building without any action. My Crazy Investor Indicator was showing confidence in the stock market but the volume was very light and the quality of volume wasn’t impressive. In fact, yesterday’s volume was the lightest of the year. We saw the market give up a 110 point gain on the Dow on Monday, then fall yesterday, and now we’re down 100.
We’re seeing the pendulum start to swing from confidence to fear. I’ve added some more short position lately as I haven’t trusted this rally. We’re seeing weakness in the same areas and strength in the same areas. Commodities, after taking a breather have resumed their bull market. Too much strength to keep them down. Oil trading at $111 isn’t helping today.
Down volume is is about 7 to 2 today. Not good.
