Right now we have a "Catch-22" situation :

 

the World Health Organization has stated they don't want to call "pandemic" because it will lead to panic.

 

on the reverse the Fed needs that very call for the PPT to do a series of emergency rate cuts

 

 "St. Louis Fed President James Bullard said he would consider additional rate cuts but only if the coronavirus turns into a pandemic or spreads on scale with influenza."

 

this was the messege from Fort Smith where he spoke today 

 

dip, if a contagious didease is coming to your city, it would be kind of stupid to take mass transit. (JMHO)

Weekly Polls

Investors Intel reported 49.10% Bulls and 19.20% Bears. Last 54.70% Bulls and 18.90% week we had  Bears. This is ST Neutral and IT Neutral. The Bull/Bear ratio is 2.56, which is Neutral.

National Association of Active Investment Managers (NAAIM) Sentiment Survey reported that the Median market exposure fell to 75.00% Long from 99.38% Long. This is ST Bullish and IT Neutral.  Mean exposure fell to 65.03% Long from 87.91% Long. This is ST Bullish and IT Neutral. The minimum exposure fell from 0% Short to 100% Short, and Maximum exposure remained at 200% Long.  Overall, this data is ST Bullish and Intermediate-term Neutral. The modest Bearish shift suggests that the market is nowhere near done. 

 

 

AAII is showing 30.40% Bulls and 39.10% Bears vs.  40.60% Bulls and 28.70% Bears last week. Given the drop, this is ST Bearish for the market. IT is Neutral.

 

 

The SH saw $72MM in short-covering. I would expect just the opposite if we were making a low.

The PPT will likely wade in here, soon, but until the Bears get some serious converts, rallies are to be sold, I fear.

M

I cant seem to get that chart uploaded right now.....maybe the experts can do it. But you have see the drop it shows after mid August. It makes the current pullback look like a picnic....

Still not the time to buy dips, and I doubt the Fed will do anything to help ................