What a day today. And I am not talking about the stock market.
The surf today on Maui was just EPIC! 15ft. faces at most south shores and at least 12ft faces on the lower west side. For the south shore on Maui, this is rare and beautiful. I was able to get some great rides but nothing like what I got to see at a spot called "freight trains." I watched pros surf the fastest wave in Hawaii for hours today. It was something to see, even if you are not into surf.
Back to the market: A late day selloff on an increase in volume is the opposite of what you want to see after the markets follow-through. But sadly that is what we have had happen the past two days.
The SP600 had another distribution day today, making two in a row. The Nasdaq also closed strongly below its 50 dma. Very negative action for the two indexes.
Semiconductors reversed hard, breadth was 2 to 1 negative, oil moved higher, buyers are not interested in buying, retail numbers came in worse than expected, and Gold showed leadership today along with oil stocks. This makes for a market that looked bad today but has the possiblity of getting a lot worse.
Stay defensive and keep tight stops. A nice decline would help build some nice chart patterns for stocks to rise out of. But we would need to go down 10% and then sideways for a while to make a lot of charts into perfect bases. Especially after the run so many stocks have had since 2002.
The short term trend is down for all indexes. The sub-intermediate trend is latteral but appears to be ready to turn into a downtrend with further weakness. The intermediate trend is latteral to up, as the market is almost unchanged since beginning of year but still up nicely since April/may bottom. The long term trend since 2002 bottom is still up.
New Swing Longs: BKR BBL EVVV MNG PMU KGC AUY IAG VGZ
Longs Outperforming Market: KNOT TVIA RBAK ABP TRGL KNDL ASR
New Swing Shorts: CORS NGPS PVH ANDE KOMG FRP OGE NWS DIS KBAY PII NLS PENN
Shorts Outperforming Market: JOE CNTF WMAR
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