I have to admit that I saw this failure coming a MILE AWAY and was fully prepared for it and all of my platinum members can verify this as I have been saying repeatedly that this rally was going to fail.

Part of the problem is that I mess around with a few hundred dollars in a stock out of a very large cash amount. Most of you can not dink around like me and must wait for a perfect setup (like XSI was close enough to) before you make your move. I will go out and buy stocks like GXDX. But that in no way, in this market is going anywhere. This is a kind of signal for you to buy stocks.

I don’t know why some of you don’t get it but it always seems to be the cocky-ignorant-uneducated-newbie that comes into the market thinking “there is always a time and a place to make big money. The truth is if these “fools” would take the time to read the classic stock market literature and listen to the professional about not trying to go long in a tape that is moving anywhere maybe some of them would have a little bit extra money in their pockets.

But nope, instead they try to “outsmart” the market which always ends up humbling them and the next thing you know they are in a 50% correction whereas if they would have just stayed out they would have avoided all the pain.

I have spent some recent time the past few days posting videos and in some of those videos I showed you the difference between how a LOT of stocks looked then back in 1999 and 2003 when perfect max green BOP and heavy accumulation charts were everywhere and compared that to the current crop of nothing that doesn’t exist out there now and it becomes apparent that the time to do nothing is upon us. Some day that will change but for now with the Nasdaq re-rolling below the 200 DMA on strong volume, The NYSE and SP 500 refusing to retake the 50 DMA with the 20 DMA trailing right behind it, this market is in no way in any way shape or form ready to be bought. Especially with the leading Chinese stock market index the Shanghai Composite rolling over and hitting new 52-week lows on strong volume. And they are not hitting new lows barely. The last attack I saw was a 5%-plus plunge lower well into new 52-week low land. How can the people involved in our markets be looking for such a move when the indexes are hitting lows on such powerful price declines with little to no charts that are setup in winning stock positions.

No matter what you believe about supply or demand I am telling you right now that there is NO demand for stocks. That is why you are seeing a very low volume selloff.