Smokey the Bear
$FAZ and $DUG turned in some modest gains today but look to be poised for more tomorrow as things look to be increasingly grim for the indices that these to play against. Looking at all the indicators on this page the prognosis for the days trading seems to be rough. Blood on the floor rough? While that remains to be seen we are posturing for just such a scenario.
“When the same news that worked last week doesn’t work this week,” he said, “you know the market’s about to take a break. In short, it needs to go down.”
But how far? An “overbought” market, one where stocks rose too far, too fast, usually corrects in one of two ways: a “steep, vicious sell-off” of about 5% to 7% or “a smaller, slower drop.” For the most part, Cramer said, the latter is most likely.