Today's action can best be describe by Sylvester the Cat's favorite word: despicable. There was absolutely no reason for a rally which reached better than 4% at one point except to knock folks with stops that were probably too tight out of their shorts. I was one of those people. Due to intraday patterns, I actually flipped long for a brief period to mitigate the drawdown, but failed to get short again ahead of the drop in the last half hour. Tales of woe aside, nothing has really changed from yesterday.
Noting the gigantic $805 million of selling-into-strength seen on the spyders, we can comfortably label today's action as a distribution. Big money was using the strength to unload in a big way. Bottom line is I'm still expecting a panic sell presently.
My equity doldrums were offset by nice moves in oil and copper, which were up 9% and 7 %, respectively. The charts of these industrial commodities are looking constructive, and I intend to stay long with trailing stops. Once we get any climactic move out of the way in equities, I suspect commodities will follow equities higher.
Precious metals were mixed... gold was down while silver gained marginally. The pair are actually both perky this evening, and I am still hanging on.
That's it for tonight, folks. Today just seemed like one of those times when everything pauses before getting on with what it was doing, so we don't have new material to process. Let's hope tomorrow will be different.