I am reminded of one of my childhood exclamations, shouted as I was about to jump off the roof..... "Jeronimo!" Also, I am reminded of a metaphor offered by the old time floor brokers when they were expecting a market dive.... they would "take it off the high board". And so it seems today.
Mr Market has opened down this morning, after be off all night in after hours trading. The Dow is off 40 at 11940, the SPX is off 4 at 1286.78 and all other major indexes are also off. The commodity complex is also running away from the risk trade, with Gold off 20 at 1324.5, Silver off 0.61 at 26.7 and Oil off 1.11 at 86.76, The rest of the commodity complex is all off. The Euro is off a few ticks at 1.363, while the Dollar is trading higher at 78.19, after trading below 78 overnight. The 10 year Note is higher at 3.40% and the Bond is flat at 4.56%.
The market internals continue to deteriorate, even with the big rally yesterday. The Momentum Change Sell signals are still in effect, and the rally yesterday did not trigger any of our stops. It does look like the fuse has been lit that leads to the equity market explosion....... the only question regards how long the fuse is.
Best To Your Trading!
Bill
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