Tough start to June..

Well, one thing we have confirmed today is that the trading sentiment from May has carried right into June.  Market was all over the place!.  Judging from the action, a bad overnight start, a rally attempt and than a failure of it as the market closed poorly back at those overnight bottom levels.  That’s not a whole lot of change from the volatile trading we are used to from last week(s).  Same issues that have been haunting the market before are still on traders' mind today despite a few days to recuperate.

Of course,  we didn't exactly expect traders to change their mindset over a short holiday, but we do find it amazing though that the type of trading stemming from fear has not eased a lick since last week.   Sure, China PMI  was short of expectations (result coals/steels stocks whacked ~8-10%),  but US ISM  was ‘bullish’  for production in months ahead and was firing on all cylinders in May.   This ISM # should have eased slowing growth concerns for more than a few hours!.   Maybe it will (it should if #'s like this) once the comatose investor switches focus from all the shenanigans encountered in May.    Is this a bit frustrating?    It's probably an understatement because the volatility doesn't seem to tire people out.    Simply, we didn't like how this market started the week/ month the way it did.    However,  what's done is done and there's nothing we can do about it.   From the look of it,  market's definitely capable of testing the recent low within a week given the fact we have a job report coming out.    However, seeing how we bounced nicely off 1040 recently, it's likely that it can happen again and we’ll prepared for it.