We are now 82% cash as of yesterday. Late in the day we added a little FXE for Bucket 2 to the books as the Euro looks oversold in the immediate term.
Please watch the morning video for yesteday's recap and more.
Here are a few charts we are watching:
The banking index (BKX) is still below the key 42.50 area but making a good run at it. If and when it punches through there it would give the bulls even more ammunition.
Change in non-farm payrolls is accelerating again…if we can get a solid number above 200k the next time it would help add fuel to the bull camp.
Mind you, none of these things are yet changing the fact that we remain in a bear market and the weekly charts still look weak. Ultimately we should drop lower again. The more important questions are a) what does the market do until it drops again and b) when it drops what is the volatility and duration of it.
