another reversal day

Huge Up day on Friday, huge down day yesterday (monday) and a huge up day today … all in all the market hasn’t moved up even though each day we have had 1+% gain/losses.

Markets that moves with this intensity with no directional bias are markets that you don’t want to be in.  With no direction, the day traders come out and have a field day at the expense of longer term traders. 

Healthy markets don’t act this way, and although this doesn’t mean we have topped and have downside to endure … things need to settle down before I will be convinced that we will have a sustainable up move.

Caution is still warranted out there.