If a market crashes on high volume and then bounces over 50% on low volume, what happens if it rolls over and volume increases again?  The answer is “another crash leg.”

Is it typical for late September and early October to bring an increase in volume?  Is it typical for late September and early October to bring selling pressure? Does one plus one equal two?

It is a fact that in the history of the US stock market, a new bull market has NEVER begun with a large rally like this.  The only other time we saw a large rally like this off a PRESUMED bottom was in 1930.  The best bull markets start slowly and the first leg up is unimpressive.  The second leg up is the monster up leg NOT the first leg up.

I know, I know, the EXPECTED fundamentals are beautiful just like the EXPECTED fundamentals for crude oil were beautiful at the 147 TOP in 2008.

Granted I’m getting run over here but, mark my words–this is going to be a disaster.

-JGS