Market Update

Huge Decline Was Ugly But Not Pivotal

I will admit to some surprise at the ferocity of the decline today, but we were aware of the likelihood of weakness, both from the standpoint of cycle analysis and screening data, as well as the end of July liquidity shortage. This report explains the implications of this drop.

Few Bears Around To Enjoy Party

The market threw a party for bears today. It seemed as though there were few of them around to enjoy it suggesting that this decline has farther to go. They usually don’t end until the cheering from the sidelines gets really loud. But today at least, price levels that were supposed to be support, weren’t.…

More Shaky Breaky Art On The Way?

The question after today’s “performance” is whether the CME margin call represents signal or noise. The market fell in reaction as expected and short term cycle up phases aborted. But what we don’t know is if that was just an interruption or distortion induced by the margin increase, or a fundamental change of trend.