Which is more perilous? Investing in markets the past two years or being a daredevil? Um, that's a tough choice Mr!

Anyway, stock markets tried really really hard to rally off short-term oversold conditions. Barring the unexpected we should continue this volatile pattern through Wednesday's Fed announcement and Friday's employment data. In the meantime, you might be better off watching human daredevil tricks and stock market shenanigans from the sidelines.

We started the morning higher given Ford's earnings and then ramped sharply after the ISM and home sales data. But, indexes faded the rest of the day eventually finding a "stick save" into the close.

Volume was heavier than average once again but breadth was relatively flat.


















































































































































This has been one helluva ride! Whiplash is a common complaint and being systematic is the only way to deal with it. The average investor doesn't want exposure to this kind of volatility in my opinion. One day you're okay, the next in the poor house. That's no way to sleep comfortably for most people. We have heavy cash positions and a mixed bag of light positions that vary widely depending on portfolio views and level of aggression.

I'm not kidding when I say it would be a good idea to just write this coming Friday since more, not less, volatility should be expected this week given the impending news announcements.

Buckle up!

Disclaimer: Among other issues the ETF Digest maintains positions in: SPXU, VTI, TYP, SMN, FAZ, SRS, EFA, EDZ, EEM, and EFU.