Wednesday Weeversal

As I sit and watch my Braves do all they can to blow their season, and after a reversal from Tuesday's highs to Wednesday's lows, I figure it was a good time to take another look at where we are to distract me from the inevitable down fall of my favorite baseball team. But I digress...

Charts below are the S&P, Nas Comp, $RUT, and VIX. The major indices failed at their 50-day and the $RUT never even made it that far, as has been noted in earlier posts. The $RUT has lagged this recent bounce. The VIX looks bullish if it was a stock. Unfortunately for stocks, it isn't a stock. Not looking to good for the market, and failure to hold recent lows will possible bring some issues for stocks with it. Depends on where we are when we get there, if we get there.

Breadth is still not promising for swing trades from the long side. With the high volatility, day trading is still the name of the game, and remaining in cash otherwise. This has been a profitable formula last couple of months so I will stay with it until Mr. Market decides to favor that strategy.

Good luck the rest of the week, here are the charts:

Wheelhouse View of the Market

Interesting past few weeks for the market. The indices are all at the August lows; in the case of the $RUT, it is just below the lows. Primary breadth indicator on the Market Monitor is near extremes, and we have had a bearish thrust last couple of weeks. The market is certainly in an area of opportunity for a bounce. But I would have liked to have seen a bad day Friday to punch through the August lows, getting us more oversold than we are, and then snapping back above those lows. Instead we got a dead cat bounce.

Any bounce from here may be tradable, particularly with end of month this week; but without the breadth thrust, a tradable bounce is all it will be, before the next leg down. Currently in cash and taking day trading opportunities as my schedule allows. I am now in the green ever so slightly for the year so, not getting aggressive with swing trading from either side yet; when I do, I will be focusing on the post earnings surprise list from Bluefin. Volatility is still pretty high and great for day trading.

The charts below are the VIX, Dow 30, and $RUT. As you can see, we are at support areas but seem to be holding on by a nail. Good luck this week.

VIX


$RUT


$DJI