Monday, February 27, 2012

Maybe a lot of reasons for this, but it seems there cannot be a right reason

for this, seems very out of kilter, out of whack
To assure myself I was not dreaming, I ran separate Linear Regressions on the NYSE Volume(BLUE) and the NY Stock Exchange Average(RED) and they are clearly going their separate ways by a large margin, which is a concern for me as markets tend to resolve in the direction of the volume.  There are enough BLACK SWANS around to warrant lots of caution and this is huge RED FLAG for me, concerning general equities. I'd have to say it makes me feel the market is quite treacherous. 
    Given the latter GREENSPAN years when the GREENSPAN PUT was in effect and "they" would just not let the markets go down, BEFORE Lehman and the Euro Crises and it puts me even more on edge.
Armstrong is fond of saying that money will be fleeing debt securities for stocks, but that does not eliminate the idea of a serious either Flash Crash or Ala'87 type move, which I want not to be involved in, on the long side until it abates.  Right now I am waiting for THAT shoe to drop.