kaltbaum premarket

Well…for a service that is out of any longs, a gap to the downside is not a bad thing. But for a service that wants to short into bounces, it is not a good thing.

 

Futures down decently with nasdaq/ndx worse than s&p. It is important to remember, the nasdaq and the ndx are your risk indices. When they lead lower, something is up. They will do worse in bear phases…better in bull phases.

 

We have nothing to do here but be patient. In bear phases, markets always bounce. It is just a matter of where.

 

I have to mention the VIX this morning because I get too many emails on it. The VIX is a volatility index where if it rises, supposedly markets are going down. If it drops, markets are going up. Many are perplexed because as markets head lower, the VIX has hardly budged. I am not saying it doesn’t work. I am just saying WATCH PRICE AND VOLUME. There is no replacement for the reality of price and volume. Arguably, the VIX was turning down yesterday indicating the market was ready to rally. A couple of people mentioned that yesterday. They now walk into a decent gap to the downside.