IT IS NOT GOOD NEWS WHEN…

The TRANSPORTS open up 175 points on the back of a proposed buyout in the RAILS…and finish down 175 points. This is indicative of major institutional distribution.

The maarket teases the upside and downside throughout the day…only to melt down again into the close. This is indicative of major institutional distribution.

Just about every pundit on the tube is saying no biggie, everything is ok, it is just a correction, market is cheap…and blah blah blah.

The only good news is that the market is beyond oversold…in which areas like ENERGY are beyond stretched to the downside beyond all norms. This can lead to a good counter-trend rally, even a vicious rally. But the fact the market and certain areas can get so oversold and stretched to the downside is again indicative of major institutional distribution.

And now…earnings about to come out in droves. Expecting random, wicked and vicious action to both the upside and downside.