Before I updated the Overbought Oversold Oscillator today I was thinking we were completely oversold. I was wrong.
The market is just slightly oversold. I was wrong, we could go lower.
It doesn’t feel like the market will go lower. Seems like the stocks stopped falling yesterday and found their footing.
The reason we are falling is because of volatility — volatility caused by big institutional moves between asset classes. I think Big Money is getting out of commodities. These shifts are in the billions of dollars. A tiny-step made by a multi-billion-dollar fund is going to shake the floor — no matter how much they try to tip-toe.
So now we are seeing sell-offs, then Big Money takes a break, then we could see more volatility. I say volatility because not everything is bad. I think the money will go into Blue Chips which will be positive for the market, because the Dow would rise.
Bottom Line
I’d be a buyer at this point. I’d like to call a bottom but these changes will take time to make. I’d still buy today.
