I hear you on the “oversold” condition of the market, but in our view this market is now compensating for the overindulgent “wonderland” rally of the past few months. We still have one month to kill until earnings season comes back and glad hands shareholders with fancy rhetoric and higher dividends.

The debt markets in the U.S. and ESPECIALLY in China are giving LOUD signals that rates are rising, financing is drying up, and there’s not enough money on the table. The austerity measures in Greece will be realities in larger economies like Spain before the end of the year, and when those government expenditures do come it will mean back to recession for the EU.

Simultaneously, we’ll see the housing market in China really start to keel over and at that point stimulus measures will be no more useful than grandpa’s sweet molasses poured into the gas tank instead of real fuel. We’re gonna throw a rod here before long, and nobody knows when it’s going to happen, but markets are showing very negative signs that there is a shift in sentiment a comin’…

Tuesday was a good day for our Trade Flash Trades and Wednesday was tough… Check back on the DS_Shoutbox feed for updates of when we’re selling and buying.

Thanks again for the feedback!

So I take it you guys aren’t too concerned with the present oversold condition of the market? I keep thinking that we need one more good bounce to relieve that before everything can tank again – though thus far that hasn’t been the case!