Where are you..Dipper?
Friday, June 25, 2010 at 06:37AM In a complete contrast to last week, 'dipper' buyers are simply away this week. It’s not that selling pressure is extreme to suggest a fall of 60SPX points from highs attained from the beginning of the week is the reason. It’s just a buyers strike that is grinding the market away. Any other time when we’d see a >5% skid in a span of a few trading days, we’d expect individual stocks to get clobbered 2x that figure. We don’t see this happening. This is clearly another sign this is mostly an ETF sensation where the majority of trading is taking place. Fast traders are controlling the game while there is no buying by MF’S/HF. It is not an exodus out of stocks, but it doesn’t mean it won’t become this if we don’t get a reprieve very soon.
How soon is soon?. Well, let’s just say we’d use ~1072 as the benchmark, so soon.. is very soon as we hover around those levels AMC/ tonight. A close below and it would seem Bulls have lost total control and recent lows would be attainable once again..if not lower. Considering, we are heading into a vacation/ holiday weeks and a few days of Q end to trade, this may not be achievable for the Bears just yet.
..and yes, we did feel the earthquake in Toronto.. Let’s just say the wheezy feeling was reminiscent of the recent “Flash Crash”.