Tuesday, May 25, 2010

ETF Update from Tuesday Evening Close

In my earlier post this evening I stated that I would not have stock data before tomorrow.  This much is true -- I don't have STOCK data, but I have ETF data as of 10:18 pm.

Today's (Tuesday's) ETF data shows that the ETF Long-Cash Ratio, while different from the stock LCR, dropped in 0.2%, e.g., even with the internal run-up this afternoon, most of the ETFs I track (over 900) ended in somewhat worse condition today than they were yesterday.

I'm expecting to see this in the stock data, but I won't know until the morning.

The implication of the ETF data is that we are too early on determining whether today signals a reversal, hence, I will NOT be jumping in at 9:30 with longs tomorrow.

Of course, if the stock data shows otherwise, I'll retract my statement.  Right now I'm not convinced that we need to be thinking about going long.


Remember, you are responsible for your own trading decisions, not me.  Please do your homework.