MARKET COMMENTARY FOR TODAY

I would like to recap the "dead cat bounce" that occurred on Tuesday to today. I like to follow the price to volume action of the market to assess the general health of the market. On Monday the markets lost on heavy volume and ended on the lows of the day. On Tuesday, the market started a rally attempt on low volume but big price gains. On Wednesday, stocks started strong but finished weak. These price actions are what bear markets are made of. It creates an illusion of strength and bottoming but I fear we are far from that point. When that day comes, I will change my stance and go with the "trend" and go long. I think a lot of people will get hurt by going long too prematurely. Stay in cash or go short at the opportune time. AAPL, GOOG, BIDU is nearing a new short entry points right now.

Tomorrow is the jobs report. I don't know what that report will hold but if the jobs report is weak or below the consensus of 100K jobs created, we will see a sharp sell off that may trigger the next leg down. Also, keep your eye on the "benign" subprime mortgage lender crisis and keep a watchful eye out for its spread into conventional mortgage lenders as well. I am waiting for the next shoe to drop. Until then, I patiently wait for shorting opportunities.