What a freaky day!
While the fear and selling volume indexes were increasing, so were some of the major indexes. Overall, the day was very napish until 2:30 when the days low was breached. From there, sell volume increased and Price dropped rapidly, but only for a few minutes. Once a line in the sand (support) was reached, a fantastic buying spree happened. Of course, my friend IIC at sharptraders.com was nimble enough to profit from it.
Let's see how today's activity affected our favorite ETF's:
- FAS: essentially flat since Jan 20, briefly tested an all-time low
- ERX: bouncing off the range lows
- TNA: choppy. going nowhere since Jan 23
- BGU: choppier. bouncing off the Jan low
Not yet time to become comitted to the stock market. Staying in cash removes all risk.