A Selloff Follows the Out-of-the-Blue Rally - Not Good

July 3, 2008

That was not the right way to follow up a reversal day (Tuesday). To
open with strength and close at the low of the day, completely erasing
Tuesday’s reversal (which was in itself bullish) - not a good thing.
That said, as I’ve been saying We Need Fear,
and perhaps the first hints of it are arriving (would coal stocks
losing 1/5th of their value in 1 session be a good indicator?)

So
we’re back here at S&P 1260 where we miraculously rallied off on Tuesday (out of the blue) - of course the market being the wicked
thing she is - I was positioned much better for a fall through that
level before the out of the blue rally. So she is being at
her most wicked self at this point with reversals left and right. I am
reading a lot of frustrated investors/traders on multiple sites so if
you are feeling that way, you are not alone. I haven’t seen so many
headfakes since the Barry Sanders years.