Catching Up With The Market

My sincere apologies for not posting in so long. As many times as I tried to get a post up during yesterday's selloff, I continued to run into issues with Blogger and couldn't access the site. Go figure.

If I had been able to post yesterday morning, I would have highlighted that there was the smell of panic in the air. The SPX had taken out its 200-day moving average, and sell programs were rampant. The market just had that feel to it.

Moreover, measures of investor anxiety were really spiking. From the put/call ratios, to the VIX/VXN, to the TRIN indexes, all signs were pointing to some sort of selling climax. I turned to my colleague here in Chicago and said I wouldn't be surprised to see the market recoup its losses by the close.

Lo and behold, the market did find its footing and staged a respectable rally into the close. Volume was off the charts, which usually indicates a climax bottom, as everyone who was itching to sell likely threw in the towel.

Today's bounce is somewhat subdued, as investor anxiety is still running high. Also, the rollover in the commodity stocks is weighing on the overall market some. Add to that the few people probably want to make big bets ahead of the weekend, especially with the continued saber-rattling with Iran.

But I am looking to increase my long expsoure, as I think another meaningful bounce is close at hand.
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