Wednesday, March 6, 2013

Market technicals breaking down


We have been openly bullish of equities unerringly since late last year and became even more so on the first day of this year when the indices all 'gapped' higher on huge volume. We had no choice but to be bullish; the markets were powering higher and they had the fuel from the monetary authorities to do so.

Now, however, that fuel is thought to be pushed a bit away; the "punch bowl" has been moved nearly out of reach and that alone would be sufficient to force us to change our bullish posture. But with the technical in the markets breaking down as badly as they have we've no choice but to exit any and all bullish constructed positions and rush to the sidelines.