Monday Wrap-up: Another Desire To Dump Stocks Into The Close

For most of the day (Monday), things were boring. The only thing that stood out to me is they sold them hard at the end again.

Take a look at this 15 minute EMini NASDAQ December futures chart below from Friday. Again, it was a great time to day-trade the two way action, but also note the waterfall sell-off from 3 PM forward. That was accomplished on very heavy volume. Heavy volume for this contract over this time period would be over 15K contracts. The period after the close from 4 PM- 4:15 PM produced an eye-popping 27K plus contracts. That shows some serious fear about holding anything over the weekend.

At first I thought maybe some were taking the G-20 seriously as gold was rocketing higher Friday as well. But, nothing came of this soirée except a good meal and dessert.

Today we saw lighter volume, hesitation and another desire to dump them into the close.

As I said volume was relatively light but breadth was decidedly negative.

Let’s turn back to my usual posting routine by first highlighting SPY (SPY). Since I must leave early today the post will be shorter than usual.

I posted the above image for subscribers on Sunday to remind investors that even if you miss a few hands having more chips than you started with is a huge advantage. So it is with investment portfolios. If you’ve lost a lot of money you’ll have to do very well over a long period of time just to get even. Knowing when to play and when to pass is a skill combined with some luck. We’re just fortunate to be on the sidelines having a larger stack of chips now than when the year began.

Am I bored? Well a little. We’re all anxious for markets to finalize whatever it is Mr. Market wants to do. But, staying cool, patient and disciplined is an imperative now.

I have to run off to the airport and meet our son.

Have a pleasant day.

Disclaimer: The ETF Digest has no positions in any featured securities.

Subscribe by RSS Subscribe by Email