Why is market so troubled......

TAPE has been extremely erratic since August, nobody is able to figure this market.

Every good news is sold off and some bad news is bought.

Fed has joined the rank of explaining then doing the opposite, outside events does not impact Fed policy, now it does ?

Traders and High Frequency Traders are equally confused and are erratic in their decision making.

This TAPE has not directional leaning, it is hanging around @ lower level.

There are few signs of hope, but hope fades away very quickly.

S&P 500 is holding its support since 3rd week of August when it hit 1867.01, then in 4th week it made higher low @ 1903.07, again on September 24th it held 1908.92...so..in last 4 weeks we have made 2 higher lows..a sign of things, that it is not falling apart yet.....

Bulls and bears continues to give extremely bullish "contrary signal"

Currently Bulls are 26% & Bears 30.2%, a lead of bears by 4.2%......

Nasdaq has positive CMF still and Dow barely red......

All these indicators should work out in bulls favour, whether it does, its another story these days.....

Every market character is different, this one is extremely difficult as it does not have any buying support......

All one can do is monitor stocks closely and see which ones are behaving better......ones own analysis have very little meaning these days.

In conclusion, try to understand the TAPE which we got and try to work with it with extremely low expectations, take profit when it comes your way.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed