Morning View

Good morning all.

The volatility in the market place, combined with the high emotions, is a true recipe for disaster. While I seek to venture into the tape when I see a slight edge, if you do not have this need or desire there is nothing at all that says you must take action here or step off the sidelines of protection. With the market under significant levels I have been pointing out for weeks now, cash is a cozy spot to be for the passive investor and it will certainly save you your emotional capital as well as your financial capital. This volatility makes me very concerned over the stability of the markets themselves and despite profiting from it currently, I look forward to it calming down from whatever level that takes place.

Yesterday’s key levels in the /NQ played out very well and despite a late day surge, which was promptly followed by a slam, the overhead resisantce remains in play. As I have discussed ad nauseam, until that is overtaken my read will be for further downside.

This morning we arise to see slight green on the screen. Bottoms are not formed with overnight gaps up but rather puke-fests that end with capitulation. The subtle hints of green this morning indicate to me that many still do not accept the recent weakness as anything more than a minor pullback, and we therefore have a long way to go.

I lightened up in the end of the day slam yesterday so I doubt I’ll be doing much today other than observing the action. There are a few new names I am watching but we need to see either another key reversal or some more basing to set up new thrusts lower before I enter.

Quint Tatro is the portfolio manager of the Tatro Capital Tactical Appreciation Fund (TCTNX). No positions mentioned