Tuesday, February 5, 2013

another reversal day

Huge Up day on Friday, huge down day yesterday (monday) and a huge up day today ... all in all the market hasn't moved up even though each day we have had 1+% gain/losses.

Markets that moves with this intensity with no directional bias are markets that you don't want to be in.  With no direction, the day traders come out and have a field day at the expense of longer term traders. 

Healthy markets don't act this way, and although this doesn't mean we have topped and have downside to endure ... things need to settle down before I will be convinced that we will have a sustainable up move.

Caution is still warranted out there.