The market was heavy today after China announced late on Friday that again it was curtailing commercial bank lending again in an attempt to slow the economy. That said activity was very quiet for a number of reasons; Chinese New Year and many Asian markets closed, a US holiday tonight and a plethora of ASX earnings due in the coming week. It seems most are willing to sit in their hands and take direction once all the news is digested. The market still has a heaviness to it yet we’re inclined to stay with the ‘sell the bounce’ theory at this stage. Bigger picture we remain in the broader range that has been in place since last September.

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Feb 15 2010

Several weak closes now and some divergences taking shape. This market is running out of puff here. I’m now quite concerned that a renewed leg lower is starting and basis the non-confirmation on the Dow Jones Transports and the lower low it may be a decent reversal of form.

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12 November 2009 – Look out below

What a week that was. What a finish to the week by the Dow! Here is the chart of the 5-min action in the Dow futures contract just for Friday’s session which shows a total range on the day of some 3580-points. I have never seen anything like this in my 23-years. Both our ASX and US accounts are square now and quite frankly that is the safest way to be. I’m not afraid to take positions, but I certainly won’t be taking one against the major trend in this environment. The markets will revert back to normal. Bullish setups will come along again. We will get through the other side and there is no harm in not trading. I appreciate subscribers want signals to trade, however, the fact that there are no signals is actually a signal in itself.

If you want to throw some money away, then try #5 in the 6th at Randwick this afternoon….

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Watching from the sidelines…