Just needed to reiterate what we said this morning. What we said is not by happenstance but by exhaustive studies of market action going back to the beginning. Simply put, when you get the move like we just had to the downside, volatility picks up in ways unheard of. We are amazed but not surprised. This will calm down eventually but for right now, from this morning:
“Markets are now about as oversold on a short term basis as we have seen in ages…the complete opposite of the overbought condition we saw in January. We could get a serious oversold bounce any day but it is not guaranteed. We would love to tell you we have a great edge here but can’t. The action will remain wild, remain random and drive you up a wall. Markets will gap up, making the masses feel better than gap down the next day, making the masses feel worse. We will get reversals of the reversals of the reversals.”
Just think, down 550, up 350, down 200, and in the past 2 minutes, rallied back to being up….and it is not even 11 am. Flip a coin on where this finishes. The only stock to buy right now is in the companies that sell Xanax and Valium!