Thursday, February 21, 2013

General market weakness

Markets weak today continuing the weakness of the last several day. Where are the bottom pickers? Not here yet..

Volatility has woke up. A look at the VXX chart shows large volume over the last months. Normally when a chart is going down on high volume I think it is confirmation of the trend. Sideways on high volume is accumulation or distribution depending on which end of a trend we are.
Not sure on this chart, but the volume declined on some of the declining days recently. Price of VXX moving strongly off of A bottom. Don't expect a straight move up. But IF the vxx reaches the level of the previous hard ceiling it would signal serious damage to the broader stock and commodities markets. And my experience is that markets seem drawn to ceilings.
It will take time, IF this happens. A couple months would be the expectation.

Easy does it!

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