MARKETS ARE CAPITULATING

The only safe haven is bonds. Everything else is into the toilet bowl and down. The tell was yesterday’s breadth of just 73%, clearly a sign that institutional participation was lacking. Now, here we are, on a down 3% open for the NASDAQ. It has the flush out feeling that you’d look for on a capitulatory bottoming out trade. The only problem with that theory is it’s happening on a Friday and we’re off on Monday.

When markets are in panic mode, conventional wisdom eschews weekends, especially those with holiday’s attached to them. I know, it’s wholly idiotic and you’re sick and tired of falling off the cliff–hitting your head and knees about the rocks. But, rest assured, this will all be over soon enough.

I can almost promise you there will be an attempt to reverse this thing and make a run for higher prices. It might be tempting to jump onboard, if only for a brief trade. Just know, there is a strong chance any and all rallies will be repealed this afternoon, as the nilly willies liquidate their holdings, and their wives smash them about their heads with frying pans for losing the family nest egg.