We simply cannot find any buyers willing to step in and support this market. Volume was lower across the board, but price destruction continues and there does not appear to be anything stopping it. Clearly the election has many on the defensive. The only time we see this kind of streak is during financial crisis and not during uptrends. This market is something else, isn’t it? Today’s job report will certainly be a market mover. At the end of the day we are likely some time away from a solid uptrend. A shame considering the market lifted off the lows after the Brexit vote. Certainly, we could have losses much worse than we have experienced to date. It could always get worse and we have been prepared for this downtrend.

Sentiment remains on the side of the bear. Sure, AAII neutral respondents outnumber the bears, but they are not in this market. There are more investors/traders on the sidelines than there are in this market. We cannot blame them for sitting on the sidelines. We are not identifying anything on the long side of the market from a trend following standpoint. Our hedges are working masterfully as we have seen sellers hit this market hard.

Today’s job report will be the last read we get on jobs prior to the election. At this point, it probably doesn’t matter unless the delta from expectation is huge. The ADP report was weaker than expected, but it wasn’t that far off from expectations. We hope the number is gigantic for the economy’s sake. A huge number would certainly add to the case for a rate hike in December. Perhaps a weak number would decrease the odds?

As we limp into the weekend we want to make sure our readers understand the kind of market we are in and to get an uptrend will take a lot of work. It will not come quickly. Exercise patience and stick with Big Wave Trading. Have a great weekend.