Risk: Don't Get Sucked in By a One-Hour "Rebound"

Chop... chop... chop... Beware the Bull Trap.

Good morning:

Quick update for Risk readers.

These are the emails that matter.

We’re “Green” on our reading—but barely.

NVIDIA is up about 2% today, but that comes after a dismal selloff. I can’t say this is a time to get back into the market… especially when we’re five days into the most volatile historical month.

Insider buying has picked up a tad—not like what we saw a month ago—but it’s up… and that’s a good thing.

The blue line is the five-day moving average on insider buying to selling in dollar amounts. It’s improving, but it’s not stellar.

Beware the bull trap… and look for a stair-step pattern down… as the market looks for any price discovery or awaits some central banking odyssey to establish stability.