Wednesday, May 16, 2012

No Rallies

This is the worst type of decline if you are long.  The market only rallies for hours, not even 1 day.  We have yet to see a rally of more than a couple of points by the close since the beginning of May.  You have a substantial subset of investors and traders that will only sell on a rally.  That subset is deep under water this month.  They are begging for a rally to sell into.  And they aren't getting it.  It is drip drip selling, no panic, no sense of doom, just steady sellers who don't let this market breathe and bounce.  I expect more weakness until you get a high volume day, either an intraday reversal or a flushout where we go down 2-3% in a day and finish at the lows. 

1 comment:

Anonymous said...

FB will save the day! Don't be a hater.