Big Wednesday Wipeout! Bonzai Pipeline, Oahu

It’s just a big picture but those are big waves! If you rode a wave successfully like that in markets yesterday you were probably pretty pumped-up to try again today. But, wipe-outs happen.

Okay, enough metaphors. This was a pretty ugly day. I day-traded most of the day and was marveling at the low volume and choppiness until the last hour when “BAM!” all hell broke loose.

This is what a bear market can do to you. If you were short yesterday you suffered like our surfer friend with that countertrend rally. But, you had to expect that with markets oversold! Today it’s back to reality, or what passes for it “today”. Tomorrow we go at one more time. Wax your boards!

Volume remains heavy and breadth is as negative today as positive …

“Unless there’s a financial Armageddon everything will be just fine.”
SAM Advisors

Truer words were never spoken. This is why I don’t watch financial TV during the day and am glad not to be a guest saying dumb things.

So, we got some dollar pumping and related commodity weakness as the WSJ suggested that the Fed may cut a quarter point on Tuesday and then stop. C said they’d keep the dividend and everyone got all lathered-up to sell the previously hot commodity sector and buy financials.

Volume picked-up smartly but breadth wasn’t really impressive. [You’ll note Yahoo/Finance’s continuing struggle with math 101.] The action was focused in bigger names but the A/D line in the NASDAQ was negative meaning the heavy volume was focused in the biggest names.

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