Monday, this gives a new meaning to UGH!

I just got my first look at the markets at 5pm and what a disaster since this morning. I guess it was all based on the elections in Italy but who knows. This entire post is a work in progress, so I will be updating from work until I finish it. There will be at least one move tomorrow, so let me start on the charts and see where we are.

Almost a 2% drop in one day and these are the moves that I hate more than anything in the world. The fast major moves in either direction that cannot be traded. Anyone who say’s they nailed it, just laugh and move on. Ok, last week the short term uptrend was lost and I deleted that off the chart. Now we lost the original CBL line again, but what we didn’t lose is the 50 moving average or the Intermediate uptrend. I will not wait on the Intermediate uptrend to be lost because I put more weight in the 50 day ma. So tomorrow I will do nothing here but watch, but if price falls below the 50 on Tuesday, then Wednesday I would be looking to bailout of the C-fund. Watching close but safe.

Small Cap once again took a little more damage than did the S&P 500. We bounced off the bottom of the CBL and then lost that and the Intermediate uptrend line. Unlike the S&P 500, the 50 day moving average here is below the intermediate, so we have little more room to wait, but it is going to be close. So like the S&P 500, Tuesday no move but watching like a hawk. If we lose the 50 on Tuesday, then we are going to bail on Wednesday.

There is nothing left here. Everything is busted!!! So bailout tomorrow morning is all that I see is left and I will either roll into the G or roll into the F. More on the F in  moment. But unless the market, the International market in particular, does a miraculous recover by 11:30am tomorrow, I’m out.

 

Last Thursday and Friday Bonds started making a move and was indicating that a buy might come soon. Well after todays total washout in stock, bonds jumped to a buy signal in one day. That is a large move in one day and I’m not sure that it is going to be legit. I think I will watch the markets tomorrow and if the sky is falling, I will move my I-fund to F-fund. But if we are trading sideways or up, my I-fund money will roll to G.

Conclusion: staying in the C and S tomorrow and bailing on the I unless we have a total reversal to the upside. I will attempt to post my move by 11:30am but no promises.