Well after the markets put in their worst monthly performance in a year, February started out with a bang. In January there was no build up of new lows during the sell off. Over that same time new highs declined significantly, without a corresponding growth in new lows….leading me to think we may have just had an 8% correction from the highs, and it may be time to test those highs again. Of course, any political or economic news would disrupt anything the charts may do. 
The there’s the Monday pattern of being an up day for the past several months….it did not disappoint. But after a nice green Monday we run into a red Tuesday. I sure would like to buy and sell stocks based on the charts rather than the calendar!
AMZN was a big red island in a sea of green. After this weekends bugaboo with MacMillan books, traders got scared that it will all be coming out of Amazon’s bottom line…they hit it hard.
Volume was light, showing traders not going for advancing prices with any gusto. So the thought process is the trend is down until it isn’t.
Here’s some scary reading to support that trend:
All you can say is wow! 2 Graphs Showing Part of the Reason for the Christmas Eve Taxpayer Massacre.
Double Dip Risk Rises After Inventory Blowout. With more analysis here: What Normally Happens to GDP After Blowout Inventory Quarters?
Futures are working their way down as the dollar is moving up this evening. Australia did not raise rates which at this time looks to be helping the dollar. Sometimes I just don’t understand. 
0 Response to “Just another manic Monday”