Lackluster...

That is the way to describe Monday's market action.  You can look at it two ways I guess.  The market stopped moving down.  That's not bad for a Monday following a bad week.  But the buying wasn't enough to give bulls anything to hang their hats on.  No bounce.

Small caps did rally late to end up with a respectable gain but that's about all there is to talk about.  The G fund did pay its penny gain Monday as we expected. 

Our friends at sentimentrader.com tell us that commercial traders are net short around $27 billion worth of stock index futures through last Tuesday, which means they are betting against higher prices.  This has very often led to a lower market going forward.  

                                  Chart provided courtesy of www.sentimentrader.com

Looking at the chart you can see that strong market buy signals are more apt to show up when they are net short $10 billion or less.  As this figure moves over (or under as this graph shows) negative $25 billion, you are more likely to see a market top.

Monday didn't really give us much to go on so I'll end it here today.  Currently 100% G fund.  Thanks for reading. 
 

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