Fragile Friday – Can Low-Volume Bounce Hold Into The Weekend?

What total BS.

The volume on the S&P to the upside has been pathetic and yesterday was no exception with just 92M shares trading on SPY. To put that into context (which we reviewed in yesterday’s Live Member Chat Room) – we’ve had 4 up days and 5 down days in March and the SPY volume on the 5 down days has been 647M while the volume on the 4 up days has been 344M – just half of what the down volume has been. 

Nonetheless, despite the massive outflow of funds, SPY is only 3 points below where it started the month, at 210.  Even if we give the benefit of the doubt and pretend this isn’t a blatant act of market manipulation designed to fool retail investors into buying the dips while Fund Managers and Banksters run for the exits – it’s still an indication that this “rally” has a very weak base and could easily collapse in a dramatic fashion.  

 

Traders tend to become complacent during rallies and they don’t take profits or they don’t keep hedges (usually because they get tired of their hedges failing during the rally) and that is exacerbated by the Corporate Media, who are also paid to stampede the sheeple whichever way the Banksters need them to go.

In this morning’s news alone, US Steel (X) is idling a Minnesota plant due to lack of demand for steel and 15M tons of coal production went off-line in 2014 due to lack of demand and the IEA says oil prices will continue to fall due to lack of demand and the IDC predicts Global shipments of PC’s will decline 4.9% due to lack of demand.  

Yet you are paying record high prices for stocks? Doesn’t SOMETHING seem wrong about this to you? It doesn’t matter if you can’t put your finger on it – SOMETHING is wrong and, if something is wrong, you need to be cautious with your investments. We took advantage of the dips to press some of our LONG-TERM beaten-down commodity plays and we took some profits off the table while we also ratcheted up the protective hedges in our Short-Term Portfolio because we simply think there needs to be more consolidation before this market goes any higher.