Timer Digest Market Commentary
Fari Hamzei
While the Equity and Debt Markets were having a wild ride on Tuesday, Uncle Ben joined the White House to pressure Nancy Pelosi, Harry Reid & Co. to move faster on a gigantic Stimulus Package. The real facts are a) Washington is too slow to move effectively in this Internet Age and b) the damage done by the Subprime Go-Go Days is simply huge.
The collective brain of the market is smarter than all of the above. While we may have seen a short-term-bottom-in-progress yesterday, this is no more that a dead cat bounce. Tuesday action reminds me of April 4, 2000. There is a lot of pain ahead for the longs.
Here are some charts. We will get into more details in our Webinar this afternoon.
I wanted us to see a -300 or lower reading on NYSE Advance-Decline McClellan Oscillator as we did last March.
Dow Jones Industrial Average closed below 12K but NYSE Volume did not get over 3 Bils. Notice we did not reach -3 sigma as we did last Aug 16th.
Notice we almost hit 5 sigma on VIX. This is rare.
