Market Update

Today’s market behavior pretty much sealed the deal on this cycle. We had been hoping for one more lower low, as it would complete a count and leave the door open to at least an upward correction. Now, there are too many scenarios one can derive and that makes this, unfortunately, a non-starter for a spread trade. Now we can see how this more fully evolves and as we said earlier, possibly consider a better price on our next spread. We’ll continue to post updates on the market as the cycle completes. There are some bearish signs, particularly in the precious metals. The metals really should have rallied on Bernanke’s testimony and they did the opposite- not exactly bullish for risk assets.