Tuesday, October 18, 2005

Another Obvious Day Of Distribution For The Indexes

Another ugly distribution day hit all the major market indexes. This reversal with such negative breadth does not suggest the recent lows of the recent rally will hold.

More and more charts are breaking down, and now the oils are joining the retail, REIT, real estate, and tech stocks going lower. I am sure a sector rotation will seem obvious soon enough. I do see a lot of nice action in certain medical stocks. I am not sure how bullish that is. My guess is not very.

I dont like the way this market looks and until there is downright capitulation -- put/call ratio 1.2, bullish/bearish newsletter # cross, and a high VIX -- I will bide my time with tiny buys and tiny shorts and keep my cash nice and cozy for better oportunities to ride the wave up.

Good luck out there.

New Swing Longs: BBBB PPDI STJ PBCT

Longs Outperforming Market: LDSH CRED HOM ADST

New Swing Shorts (choose wisely): TRW LSS OMM OXY THO XOM ICUI SLB HYDL APC PPP DSL TRZ DRH

Shorts Outperforming Market: PQE NVR WLS PHM LEN IPCR NAV NJR ALB VCG MAS DUK CNSL

1 comment:

Anonymous said...

yes, indeed I learn a lot from your newsletters and I'm thankful for that. investing and trading is a very exotic business in my postcommunistic country.the market is small and have some great differences to US market. your posts are helping me to see the biger picture :)

ivanka