Of course this is not a photo of a whipsaw lol. I certainly do not have a photo of a whipsaw. However, I believe this to be an antique table saw. In fact, I was not sure what a whip saw actually looked like, but no matter as I am more interested in the colloquial meaning. Specifically its meaning in financial or trading circles is to indicate wild swings in the market. That is exactly what we saw so far today!

The widely anticipated Consumer Price Index (CPI) number was released before the market open. It actually was bad, as in showing the economy was not slowing and prices for many things had still been increasing month over month. That is not what the Federal Reserve had hoped to hear. This means the Fed will be looking to further raise rates.

The market opened in the toilet and was flushed down over 500 points on the Dow Jones Industrial Average...It was too painful to watch! But just then the market seemed to catch a bid and whipsawed to the upside over 600 points! Talk about volatility!

Of course this is music to my ears since I have been utterly too bullish since the start of the year. Yet I must admit, I don't really understand the whipsaw reaction! Longstanding conventional wisdom says "Don't fight the Fed". Perhaps it was some sort of a capitulation bottom? A relief rally maybe? What I do know is it was unexpected, at least by me.

So do you think we have more pain to endure? Are we going to hit a nasty downturn? I am interested in your thoughts, as I have officially come to the conclusion that I have no idea. Day by day, up seems to be down and what was right is now wrong. Maybe that is what it feels like to get old. If so I am helplessly lost anymore!