Dave's Daily: Complacency Kills

Dave's Daily

By Dave Fry, founder and publisher of ETF Digest

January 12, 2010

COMPLACENCY KILLS

It's always ironic when you write a piece suggesting that something dramatic was needed to knock bulls down you get something odd like Alcoa that does the trick.  Why odd?  Alcoa always has complex earnings results that defy dissection.  The bottom line is the street didn't like the results, and with markets much overbought it doesn't take much sometimes to cause reversals.  Add-in China's decision to restrict lending to curb speculation and inflation (Gasp!  I thought there wasn't any) and this made matters worse.

Tuesday wasn't a disaster unless you were in the commodity pits and long as things turned around significantly. 

In this latest bull-run volume always picks-up on down days and Tuesday was no exception.  Breadth was as negative as you'd expect with WSJ details below:

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