Lee, obviously i was not referring to the people posting regularly on this thread who have a deep understanding of the market.
i fully agree with what you're saying - there is cash out there that may ignite a rally, but it's biding it's time and the indices refuse to reflect the deterioration in fundamentals and internals so far.
i also suspect that there has been some selling by Japan-based investors, although that's just a hunch at this time, i have no data to back this up beyond the obvious rise in the Yen.
however, as you say, no serious selling has hit the market this year, not one correction was marked by a selling climax and complacency is remarkably high considering the backdrop.
the extreme volatility you mention is typical of a late stage mania...everybody knows we're at nosebleed levels, and neither do they want to miss heading for the exit in time, nor do they want to miss the 'next leg up'.
i was surprised to hear about Magellan raising cash of late...and i'm even more surprised that this hasn't affected the market more. btw, overall, mutual fund cash levels are still low when compared to historical averages.
and there is the little matter of NYSE members selling...and of course the upcoming trade balance data, which are likely to set yet another record.
an interesting fall awaits...(fall=autumn<g>)
regards,
hb
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