Still no panic yet It is very orderly selling. Stocks are drifting lower slowly. No major selling. You are not going to get capitulation with this approach. It is like death by thousand cuts. Slow bleeding can continue for a long time. Small gap downs followed by low volume means that very few investors are getting out but their portfolios are slowly being eroded. Lot of investors did not get a chance to get out. Trapped investors will panic under certain conditions.
Dow is down over 200 points but sellers are still not running aggressive selling programs. Maybe they are hoping for Bens help. The chances of Ben intervention or QE3 is increasing. But the question is how will that resolve the European issue. If there is a rally on QE3 it may give a chance to some trapped investors to get out. The bounce in gold price is in anticipation of QE3
The volume is low. Few sellers & even less buyers thus drop in share prices.
Quite a few stocks are creating 52 week lows. But they are not cracking hard.
Very boring market for me. Not sure how this day is going to end. Will the market will be saved by some short covering in the end of the day or this selling is going to accelerate.
Summer is on its way. It could be one dangerous summer. Usually the volume drop & the stock become very illiquid. In the event of any major adverse economic development stock markets could turn very very ugly. I doubt that lot of investment institutions would allow regular summer holidays to their traders. Could be an exciting summer after all.
If you are in total cash have patience & let the market come to you. Sometimes I get impatience.