OK, let’s try this again

Initial Claims higher, that sucks! The morning was entirely Bizzaro world, when all asset classes went down: dollar, oil, stocks, gold all down! Wasn’t that like an apocalypse? I was ready to capitulate, but I had a meeting to get to.

It was a day that made me money….through no fault of my own. I had put in some ES buy stops at 1013 before going to a luncheon meeting. As it turns out, I was filled and when I got back, ES was at 1023. I sold immediately when I saw that!! Thank you market.

Well, I’m not sure it was a key reversal, but the bulls shouldn’t be too discouraged. The market performed well off of a bottom. Advance/Decline volumes were -16:1 early in the morning but ended the day close to 1:1. Tomorrow is the start of a long weekend and we may see some patriotic buying.

It was surprising that the market was able to recover as much as it did with all the bad news this week. Today’s Initial Claims pretty much told us that Friday’s NFP report will be ugly. Home sales confirmed what we all knew. And the gold bugs got blasted bad! One more thing, AAII Sentiment Survey: Bearish sentiment has now stayed above its historical average for 8 straight weeks. How can any market go up after all that?

We may not go up much, but we are oversold and it is the beginning of a new quarter and a national holiday. A bounce is in order.