The major market indexes finished down today with volume lower across the board, except on the SP600 where volume did increase but it was not by much. Breadth was negative all day with few groups ending the day up.
The pullback in the indexes was needed today as the markets were getting a bit overbought. A pullback, after this good run, is needed to help create bases in strong leading stocks so that when they breakout they will have a stronger base to launch out of. This pullback also keeps people from getting too bullish too fast and helps bring the bears out of the "I told you we were go lower" camp. With that kind of backdrop it will make it easier to climb that proverbial "wall of worry."
So it was a boring slow day that didn't have much excitement about it besides TOL. The big news was TOL and its earnings guidance and miss. To that news I say: DUH! Every stock in the Homebuilders group started breaking down in July/August on heavy volume. Besides that, Ken Heebner the fund manager for CGM Focus Fund-One of the best funds past 1,5,10 yrs-sold all of his Homebuilder stocks earlier in the year. Why is that a big deal? Because he was buying them in August of 2000 and held them the entire way up. He invest in only the best of the best. He is the best and by looking at the stocks he holds you will see why he is. If you would have invested $10K in CGM Focus five years ago it would now be worth $35K+. What stocks is Ken Heebner buying now? Go check it out for yourself.
New Swing Longs: SMTX SBAC ABAX COHU DDD
Longs Outperforming Market: NDAQ-236% DESC-162% WIRE-63% CCI-55% SUPX-45% LCC-43% ACR-41% NWD ARS VTIV SCUR MDCC RVSN MORN LDSH ARDI ACTG OPTC MECA TFR
New Swing Shorts: NONE
Shorts Outperforming Market: NONE
Small Stocks On Radar Screen: ICTG EPAX AABC NTII
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