Pre Market - August 1st 2007

Good morning Rebels...

Not a good day setting up here, at least at this moment. We have a lot of data coming to the market today: ISM index, pending home sales, Oil inventory. This will have an amplified effect on the markets today with so much volatility everywhere.

The foreign markets got smoked overnight. The Asian markets suffered a broad sell off and all of the major Asian indices were down by significant amounts. In the European markets all are down at this time (with the exception of the Swiss market).

I expect to see the $VIX (volatility index) to set another 52wk high today. This is a day to just stay in cash. There is no need to feel that you have to go "bottom fishing" here. There will be a time to buy and this is NOT that time yet.