Premarkets were down -0.10% after somewhat-good-news from the US financial reporting this morning, but the overall investor concerns for market stability is still negative.
Markets opened down -0.50% and the $RUT was at -1.00% by the 15 minute mark. The $VIX jumped from the low 12’s to the low 13’s in a matter of minutes while the volume remained at moderate levels.
By 10 am the opening decent continued, albeit more slowly, in what could turn out to be another pump-n-dump session.
There are more and more calls to take risk off the table along with my own warning the past month.
David Tepper: Not saying go short stock market, but ‘don’t be so freakin’ long’
Â
 Bloomberg
David Tepper, the top earning 2013 hedge-fund manager and formerly prominent bull, says investors should be more cautious and perhaps cut back
The short term indicators are leaning towards the hold side at the opening. The all important signs of reversal, up or down, have not been observed so we are mostly, at best, neutral and conservatively holding. The important DMA’s, volume and a host of other studies have not turned and that is not enough for me to start shorting. The SP500MACD has turned flat, but remains above zero at 7.16. I would advise caution in taking any position during this volatile transition period although Barchart.com shows a 16 %buy. (Could be right.) Investing.com members’ sentiments are 65 % bearish.
In looking at the 50 DMA, the current SP500 opened above that line and the small caps remain below the 145 DMA. I can not see, as of right now where those large cap MA’s are rolling over to indicate any permanent bear run but the falling small caps are a real worry. The small cap trend is sideways with a negative slant and the $RUT is belowthe 200 DMA and approaching a major support at 1090. Breaking through that support is going to create a major dilemma for the rest of the markets.
Bottom line here is that I have not seen any serious bears jumping out of the woods just yet, although I am VERY concerned that ANY minor correction could turn nasty in a heart beat. One significant signal would be losses in any of the major averages that go over the ‘magic’ 3 % and then you need to pay close attention to risk-off tactics. Any market correction over 6% would be an additional signal and I can’t see having one without the other.
