Uh.......This does not feel right!

I have been waiting for some clue today as to direction.. and after a flat open, at 2:00pm, the Dow is up 65 points and the SPX is up 7.50.  The Commodity complex is generally higher, with the PM's and Oil leading the way, while the bond market is mixed and the Dollar is lower after trading above 75 over night.  The Euro lower also.  But here is the problem... there is no volume anywhere.  Even SLV, the Silver ETF that traded its entire float twice over in 2 days last week, is trading on 1/3 the volume.

My position is the same today as late last week.. sit on the sidelines while this mess gets sorted out.  The last Momentum Change indicator is still the April 20 Buy signal.... and as of this afternoon, the indicators are mixed but still leaning Bullish.  The extreme volatility is impossible to trade.  My guess as of this afternoon is that the market sustained heavy damage last week with the crash of the Euro, the crash of the PM's, Oil and the commodity markets in general.  The best indicator of the caution in the markets is reflected in the Bond markets, with the 10 year Note trading up at 3.14% land the long Bond trading higher at 4.29%

In addition, the Dollar, although off the level achieved over the week above 75. is still trading at 74.75, 2 1/2  cents above the level reached last week prior to the crash.  And as we have learned for the past year, the markets, either equities or commodities, are not going anywhere in the face of a strong move higher in the Dollar.

There is no economic news today, but there is a lot of noise in the business press regarding Greece, Portugal, and the rating agencies.  JPM has offer a story on Brent, looking for 130 by the 3rd quarter, and Iran says they have proof OBL died some time ago.  Now there is a source you can believe!

The only report worth recommending is a story at Zerohedge regarding the Reuters report on what they think caused the Oil and PM crash last week.  And the suggestion that a lot of money was lost.

While the Momentum Changes indicators are still on the last Buy signal, there has been deterioration in some of the other timing tools, suggesting that a severe decline is possible.  As I don't yet have a sell signal, and being aware that this volatility in the markets has rendered the Momentum Change signals suspect until a trend can again be identified, I will remain on the sideline.

Best To Your Trading!

Bill