But it was another Bronx Cheer for the new administration’s repeated remedies. A small gap opening higher was all bulls could muster and it only lasted a few minutes before sellers took complete charge.

Volume was average but breadth was horrible and with a little more time we’ll see if it was a 90/10 day on the downside.









































































































































Another trial balloon shot down. Since Obama was elected SPY is down 23% which only means the problems we’re experiencing are deeper than lofty rhetoric can cure. But, all these baby steps aren’t being met in the markets by any enthusiasm.

I can’t say we’re happy to be so heavily in cash when there seem such excellent shorting opportunities but markets are ridiculously oversold. The markets have been the playground recently for day-traders. That includes trading desks and hedge funds. In the meantime, we can only keep our powder dry and wait patiently.

Let’s see what happens.

Disclaimer: Among other issues the ETF Digest maintains positions in: IEF, TLT, GLD, DBP, DGP and GDX.