Our caution over the last few weeks has been warranted after these past two days. I’d love to say we are about to bounce and recover, but at this point all rallies will be sold into. The VIX moved 5% today, but the 5% came at the end of the day. The debt deal does little to improve the financial situation of the United States. Not too mention the dismal ISM and Personal Income/Spending numbers. This problem is not isolated to the United States, its a global issue.

I will post some charts here this evening in a different post highlighted the dire situation the equity markets are in. All major US indexes are below their respective 200 day moving averages. Perhaps a one or two day bounce is in the cards, but I wouldn’t count on a small bounce here. Trouble is here and it is time to do something about it.

Cash continues to be king!

Fortunately, this market selling will yield a brand new bull run at some point in the future. Do not take your eyes off the market as you could miss a large opportunity to make money from this market.

Stay tuned for charts!