Wide-spread follow-through buying after the prior week rally did not occur. In a few instances it did, raising a stock price here and there, but most stocks immediately slumped again. Whatever data caused buyers to snap up stocks the prior week was not enough to persuade more buyers to act this week.

Many headwinds for stocks remain in place, and there remains a concern that the Fed may still raise rates at least one more time. This despite a dismal Treasury auction of 30 year bonds, signaling no one wants to lock in current rates for the long term.

Still a great amount of pessimism and resignation among institutional investors. Huge amounts of capital remains in idle cash as many investors remain absent from the stock market altogether – creating extremely difficult low-volume conditions for us in which to harness any profits.

Our long positions – both recent and old – remain under tremendous pressure, and shorts last week were mostly neutral. Highlights remain few.

Next week will provide more clarity as to whether the prior week rally was a legitimate buying opportunity or just another in a series of pre-mature failed efforts.


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