Was today "capitulation in markets".....

Indices were hammered to the tune of almost 3%......

Reason for this "tumble" is @ best very flimsy.....

China has articulated for months that they are clamping down fast to bring their economy from "super hot" almost 12% GDP to more manageable 9%....

BUT..HFT took today's mixed data from China to go "sell,sell,sell...on a "surprise Chinese weakness"

Internals of the market is "screaming capitulation" as listed below :

Down volume led by 37.73 to 1 in NYSE & 21.13 to 1 in Nasdaq..these ARE extremely bearish ratios on a historical basis....

Declining stocks led by 5.94 to 1 in NYSE & 8.93 to 1 in Nasdaq

New 52 wk low were 124 in Nasdaq & 63 in NYSE.....

CSCO commentary was nothing but a " major cover up for a weak Q"..their guidance was also weak....

S&P 500 has declined 3.6% from few day's ago & Nasdaq has declined 4.5% in few day's......

With HFT pushing sell button...most of the correction is done in two day's..as IS the case in the last two full session.....

These HFT led sharp UP & DOWN is the "new game in town".....do the opposite or book profit as you see it......

SO...we MAY open lower then quickly go UP then go down again & then close "green"...that IS the way i see CSCO led Thursday......

I do NOT see too much "punch" left in this HFT led selling.....

AH Futures Down

AH Asian markets Down

AH Oil Down

AH Gold UP

BLOG does NOT give buy or sell.

Saleem