Gregory Mannarino:Caution Advised: Capital Outflows, Low Volume, Divergences, May Sink This Market.
SeekingAlpha.com
May 25, 2015
With mass capital outflows already working against this market, DOW transports diverging from ever increasing market highs, low trading volume, and a jittery bond market, it is clearly time for caution.
Does this all mean the market is going to plunge tomorrow?
Absolutely not.
However it may just be time to take some cash off the table on the long side, pull profits, and maybe look for get short as well.
My concern as a trader myself is not just the inordinate low market volume, capital outflows, or even the lagging transports, but it is the divergences between them. Something has to give.
The already overwhelming distortions which exist in this market across every single asset class being driven by “abnormal” monetary policies by the Federal Reserve, continue to get worse.
Further, there is no end in sight.
There are simply too many factors weighing against this market at this time, and it is for this reason that I believe traders continue to take up short positions against this market.
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