If I don't post every day it's easy to forget how the routine goes, but that's not your problem. Anyway, most disappointment Wednesday surrounded financials and perhaps materials. Investors were pretty energized regarding bank prospects but were disappointed with GS and AXP reports. The DJIA was propped higher by IBM's earnings keeping in mind it's a "price weighted" index with the company being the big dog there. Oddly, the rest of the tech sector saw sharp declines led by semis and networking.

Commodity markets were mixed to down on the day while the dollar sold-off. Bonds rallied some as stocks were lower and home building data was weak.

Volume continues to be incredibly light and it's hard to put your finger on why. Connected obliquely was news that hedge fund assets reached and exceeded their prior highs now at $1.9 trillion. With an unknown percentage of these assets involved in HFT (High Frequency Trading) it only enhances the impact of this activity.

As some may know we utilize DeMark indicators to assess timing exits from long or short positions. DeMark is usually quiet but today he posted a note suggesting an "imminent" decline in markets was at hand. With POMO ongoing ( more today) it's the wind behind bulls' sails that could defeat many technical indicators.

In any event, volume picked up on selling while breadth was decidedly negative per the WSJ.

Continue to U.S. Sectors, Stocks & Bonds

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