Divot
Investor
- Reaction score
- 5
Buyers and sellers had on their best poker faces Monday. No one really wanted to lay anything on the line, which is interesting from both the bullish and bearish points of view.
Far more important than how I feel, or a silly personification of large mammals: The numerical measurements of market supply and demand - the bullish percents - moved lower today. This tells me that supply is actually in charge (by a thin margin). Furthermore, the shorter term measurements of market breadth continue to show that the wheels are starting to come off of a market fattened by demand. (Large caps are more vulnerable than small.)
I think there will be another trip down for stocks, and until my metrics cause me to believe otherwise, I'm not a buyer.
- From the bullish viewpoint, that was bad news. After a big rally on Friday, the bulls should have charged out of the gate to take charge of the new week. The "heavy hitter" buyers were few and far between.
- From the bearish stance, today was also bad news. Many bears had hoped for panic selling after retail investors had a weekend to digest the news. With a minor but fairly painless correction out of the way, today set up a plausible base for the market to continue to climb the "wall of worry."
Far more important than how I feel, or a silly personification of large mammals: The numerical measurements of market supply and demand - the bullish percents - moved lower today. This tells me that supply is actually in charge (by a thin margin). Furthermore, the shorter term measurements of market breadth continue to show that the wheels are starting to come off of a market fattened by demand. (Large caps are more vulnerable than small.)
I think there will be another trip down for stocks, and until my metrics cause me to believe otherwise, I'm not a buyer.
