We've Got Fireworks

The recurring theme in this market seems to be that any exhilarating upside reversal, such as the one we saw intraday in the Nasdaq especially, has been rendered in vain. Indeed, today's price action is downright demoralizing on many fronts for bulls, as we are now right back down to our correction lows on most of the major averages. 

The bad news may very well be ahead of us, though, as a VIX which is still fairly subdued does not seem to be accounting for a market which could easily stages a fresh leg lower next week. Should that happen, I suspect it will be a fast and furious move, since the choppy action we have seen of late could very well have lured many a trader into a complacent state insofar as assuming that we simply must be in a firm range which needs to hold. 

In reality, nothing in the market ever needs to happen, at least not the way we planned for it. Hence, remaining flexible is much more than just a platitude when faced with this type of price action. 

And when we gauge the updated ETF for the Dow on the daily timeframe, below, the floodgates seem ripe to open if bulls do not pull the rabbit out of the hat again, and actually hold onto the rabbit, too. Despite some standout parts of the market like pot stocks, namely CRON, and TSLA holding up well, we still seem on the cusp of more fireworks to instill some genuine fear into bulls which have failed to hold up their end of the bargain.

On a more positive note, precious miners are exuding excellent strength as a safe haven. We are playing some with Members and have our eye on more next week if the strength keeps up.