A watched pot never boils

Ever hear that expression? That's what bears are thinking right now I'm sure. How frustrating must they feel after today when it seemed like for once they could see a decent down day. Although today seemed insignificant it didn't look good underneath the surface. Tech lagged, bonds were down and the VIX dropped quite a bit even though the market was in the red abliet slightly which made me somewhat suprised to see the market recover towards the end like that. But it hasn't changed the bearish messages I have noted and now you can add today's volatility crush to the list. I also noticed gold stocks were by far the weakest sector today even though Gold closed at a new all time high. Was it simply a one day thing because of noise volatility due to option expiration or are gold stocks signaling a turning point for gold looming? We'll find out soon. What I do know is that rydex traders continue to show bearish signs for both equities in general and gold.

Comming into today, cash flow into the rydex precious metals fund equaled that seen when gold stocks made an IT peak on June 1.




It will be interesting to see what AAII sentiment looks like tommorow.