Hangman

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Could be tomorrow, could be days, weeks and perhaps months before we can all recognize a discernible top in the broader market’s price action.

The steep sell off last week has the type of institutional grade abandonment that spreads fear like peanut butter over toast.

But for now, all we can really say is the market gave a predictable bounce then took a breather Monday. Chart looks a bit like a hanging man. We’ll gauge volume to see if the sellers come back in force, or if the Bull can muster the power to signal accumulation is in the works for fund managers this fall.

Our upside call on Oil last week couldn’t have been any more on point. No, we had no idea crude, and the USO fund, would bust a 10% move in a day. That’s three days of shorts covering here. Time to ring the cash register and see how it regroups.

We’re still watching the resilience in Homebuilders with the ITB fund. Not hard to see home buyers going out for loans if the Fed makes its first target rate hike in nine years. Yes, nine years it’s been…