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That Was Fast -- Stocks Lose the 'Yellen Effect'

Tickers in this article: AMZN BLMN CCJ FB GOOG NFLX PCLN XLU XLY

NEW YORK ( TheStreet) -- Was this stock market performance on Thursday a surprise to you? If so, you have not been paying attention to the cautious tone that I have been highlighting in my articles . For the past two days all we have seen from the DJIA and the S&P 500 is a bullish reaction to the commentary from Federal Reserve Chair Janet Yellen.

As I have been mentioning, Janet Yellen's bullish tone for the economy does not reflect reality. There are certain indicators within the marketplace that are telling an entirely different story compared to the DJIA and the S&P 500.

A few of those indicators are the Select Consumer Discretionary ETF and the Select Sector Utilities ETF .

There is no way the XLY would be in Trend Bearish territory if those stocks were signaling a bullish consumer economy. Keep in mind, Trend is a three-month or longer time frame. The XLU would not be a leading market indicator, with a 13% return year to date.

Those two indicators are the sign of a slowing economy. There is no dispute. If the stock market was on in a Trend Bullish mode, the growth momentum stocks would be leading this market higher such as Facebook , Amazon , Netflix , Priceline and Google . I can go on and on with examples. There is no need.

The Nasdaq and the Russell 2000 have this market correct. They are both Trend Bearish. The DJIA and S&P 500 will soon follow.

With that said, the markets had quite a turnaround today, without the DJIA. The DJIA closed up 32.43 points, after being up over 100 points early. The S&P turned red in the afternoon, closing down 2.58 points. The Nasdaq was down 16.18 after being up almost 44 points. The Russell 2000 closed down 11.12 points after being up 11.15 points.

The "Janet Yellen effect" has worn off.

This market is very treacherous. You must exercise extreme caution if you are of the bullish mindset. The indicators are not in your favor. Most Wall Street pundits are not being forthcoming when it comes to the market risk. As I have said repeatedly, volume has been a leading indicator for me. The lack of volume is the sign. You cannot have a rising stock market if the foundation, in this case, volume, is lacking. The fall will eventually happen.

On Wednesday I shorted Bloomin' Brands . I covered that short today with a gain in excess of 1%. I also added to my long position in Cameco Corp . I have an extraordinarily oversold signal, according to my algorithm process.

At the time of publication the author was long CCJ.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.