Scaredy Cat

  • Once again, there is too much call buying.
  • Once again, there are more stocks declining than advancing, even though the market is flat.
  • Credit spreads are at their widest since the crisis began.
  • Won't more banks issue stock if the market goes up? That is supply.
  • Bloomberg reports that option trading volume has collapsed. That is why I am putting less weight in the high call buying, but I am heeding the signal.
  • Call me too scared to buy, too scared to short.
  • Why too scared to short? Times of turmoil are usually good buying opportunities and a Senate package can be announced at any time.

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