20080715 Timer Commentary

It’s finally starting to smell like panic. There’s nothing like pictures of people waiting in line to pull money out of their banks to create fear and uncertainty. The SEC warned about rumor-mongering while the Fed continued floating official rumors. Smart/dumb money sentiment keeps on stretching and volatility keeps increasing. Since June, average volume has been increasing, coinciding with a decline in prices. Seems like a good setup for capitulation this week, and it could be harsh.

Current positions: two models in cash, two models long.