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