Negative Futures

Yesterday the market showed negative futures, and all the news was on China hitting a bear market, and a huge drop. Copper, oil and related commodities were the first to go, and we saw more world money moving into cash, the yen and Treasuries. Most of the overbought stocks are starting to slip, even AIG the wonder slime stock that people are now wondering is overvalued :)

VIX is a lagging, NOT leading indicator, but as we we see VIX rise more FEAR will enter the market. All the talking heads Monday seemed to have taken a "fear pill" over the weekend, and the TV money shows were babbling about the depth of the downturn in September. My neck would twist as I took an hour of this in today, for the pure entertainment of the "position taking."

We recalculated the Dow and twitted out at 10 am., and the market spent most of the day trying to approach the new s1, and even tried for r1, struggling but staying below the pivot point all through the normal 2.30 p.m. whipsaw, preceding 3.00 to 4.15 p.m. EST that I now consider simply a free for all of guessing.

The first trading day in September the S & P was up for 5 straight years 2003-2007, but lost 4.2% in 2002.

Shawn Adams once said, "The CROWD is always wrong at market turning points, but often times right once a trend has set in. The reason many market fighters go broke is they believe the CROWD is always wrong.

There is nothing further from the truth. Unless volatility is extremely low or very high one should think twice before betting against the CROWD."
It also appears retail is losing its luster with institutional investors. Hmmm. What might they know?
http://www.bloomberg.com/apps/news?pid=20601103&sid=a6mZZQ99ik80

Home equity loans are now hard to get. Duh. Credit cards, run by banks who lost their ass screwing us, and then we paid to stay in business, have a new game, and it will hit us big time: Millions Face Cuts In Credit Card Limits, Biggest Industry Shake-Up In 20 Years

Read carefully, you have Floydian prediction here: "lay a way" is back with a vengeance and becoming increasingly "the way to pay", as people will have much less credit.