Leaders Index 9-4-15

The market had another ugly session yesterday. We had hoped that with the China market closed things would calm down, but it didn’t happen yesterday. The major averages opened sharply lower after weakness in Asian and European markets. The major averages sold off most of the day and had significant losses when a little late strength saw the major averages close off their lows, but still low in their intraday trading ranges. The COMPQ fell 1.05% while the SPX declined 1.53%. Volume was lower as would be expected on the Friday before the Labor Day weekend. A weaker than expected employment report had something to do with it, but overseas weakness seemed to be mostly responsible. Leading stocks were lower as well with the leaders index declining .65% and finishing in the lower half of it’s intraday range. This is better than the overall market and the green candle showed it closed above the opening price. Volume was lower and well below average. The market continues the recent extreme volatility. China will open Sunday night but the U. S. market will not open until Tuesday. I believe we have seen the highs of this market and will continue with extreme volatility and probably lower prices. The large swings in both directions make it difficult to hold any positions, long or short. Cash is the place to be. Jerry