The stock market indexes churned today on lower volume. Which is a welcome sign considering all the recent distribution days we have had. However, todays action was still quite negative all around.
There was poor breadth, low volume, and an obvious rotation of money into defensive sectors. Did you see the Consumers, Food, and Tobacco stocks today? I did and the obvious standout to me was MO.
Altria (MO) broke out of a beautiful long term base and Reynolds (RAI) did too. Along with that all the other defensive stocks are setting up in very nice bases. This could give us yet another sign that the current uptrend is in fact over.
This bounce is weak and if it continues it will only provide some protection from all the ugly and sloppy chart patterns on the daily and weekly charts. Most of the old leaders charts are broken and the rotation is obviously into defensive stocks.
Short-term and sub-intermediate trends remain down, the long-term and intermediate remain up.
Keep tight cut losses and new purchases into "dip" stocks very small.
New Swing Longs: MO CHRS CVO
Longs Outperforming Market: RGEN MNTA ASEI ADST
New Swing Shorts: FTD TSA SEE CBT BBG TTC LGBT BKS WMGI
Shorts Outperforming Market: CNTF LEND
Under The Radar Screen: CTTY SYNC GSX SNG OPTC BL
Aloha from Maui
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