Financials continue to feel max pain as major banks continue to be hammered by selling. The exotic forms of investment continue to haunt those firms who were careless and did not handle risk properly. Selling has spread throughout the rest of the market as Crude Oil prices race higher. We are also seeing Grains and Agriculture futures point higher as well. These markets have and continue to signal higher inflation. The markets haven’t quite seen a peak in fear, a washout of the markets is highly likely. Along the lines of a washout will more than likely be proceeded by crude oil entering in superspike mode. The market is in chaos mode and can not be trusted. Financials might continue their trend but the short trade has become so obvious a sharp covering rally could wipe you clean. So few stocks are working ...

Monday the NASDAQ undercut its most recent rally attempt’s lows reseting our confirmation rally. Tuesday’s action failed to re-ignite a new rally attempt. Volume was on the light side as NASDAQ volume fell roughly 2% while on the NYSE we saw higher volume. This market continues its “no man’s land” path. Overall, this market does appear to be a bit oversold at the moment and good news is that we haven’t been able to accelerate to the downside. However, upside seems a bit LAME! Until a clear direction in this market is set, its best to step aside and let others waste their time. Times like these the greats would be having a vacation. The lack of interest from large institutional players leads to lackluster markets like we have here. So many stocks are breaking out and failing that it leads me to ...