A nasty last hour selloff left most averages down for the day. The one exception being the Dow Jones Industrial Average rising .2%. The Nasdaq fell .5%, SP 600 fell .6%, the SP 400 fell .4%, and the SP 500 fell .1%. Volume rose on the Nasdaq and fell slightly on the NYSE.
Sidenote: Once again, my charts and IBD charts disagree on the Nasdaq and NYSE volume. I wish I kew which was right. TC shows lower; IB, IBD, and Realmoney show higher. So I am going off the IBD data.
The higher volume selloff for the Nasdaq gives it and the SP 500 five distribution days in the past four weeks. This should be enough of warning flags for investors to get rid of any stocks you are not happy with. These distribution days along with the obvious churning in the Nasdaq this year should give you pause before initiating any new longs.
Unless the longs are perfect technically, are in a leading industry, and have sound fundamentals I don't recommend taking any large positions while the market is acting like this.
The Nasdaq and SP 500 are in short term and sub-intermediate term downtrends. The SP 400 and 600 are in short term downtrends and sub-intermediate term uptrends. All are still in long term and intermediate term uptrends. So as you can see, the markets are kind of in a battle ground right here.
I think it is dangerous trying to predict which way this market is going to go. I don't care which way it is going to go anyway. I will just play that trend and take what the market gives me.
New Swing Longs: LTM PEC MERX PSPT
New Swing Shorts: NONE
Longs Outperforming Market: ERS-117% PETS-149% TGB-28% ORA-73% AIX KNXA-32% CKCM SAY-26% SXC GOL-59% BBD-127% GMXR-224% ASTE RVSN-36% IHS-27% BOOM-325% TRO NEM ARS-32% CIB-28% PAY COGO CNTF LEND LCC-48% LCRD-66% CBG-78% MESA EDS STX GRS-80% KEYS-27% MCX-60% ITRN BTUI-115% LDSH-58% FNX ASVI DB NNDS BEAV-30% EFII ROK IKAN-31% SPWR-37% QCC MMK FWLT-68% MORN DRH AKAM-63% CUP ADLR-64% MRB-78% TVIA BRLC GIGM-48% RNAI GRZ ENER AU-33% TFSM RDCM-28% ACTG RATE-113% CDE KNOL BAM NUVA RADS ACR-81% BE DA ICGE IED-47% BMD-292% LWSN CTXS TXI SPSX-25% LJPC BEAS RSTI PPCO-28% AXE STEL SNG SNPS RCNI BGC-40% UHAL-80% SILC-86% FC
Shorts Outperforming Market: NONE
Stocks On Radar Screen: BTI ITRI SPSN ASTT OCPI NWD KVHI FRK GV PROG TISA
7 comments:
love your blog.....what u think about BRKS......volume patterns look great and nice pullback and holding its 20dma today
BRKS is beautiful. It isn't a buy yet, until the stock can cross above that February high. I love the accumulation on the right side of the base and a little more sideways action will set BRKS up for a great breakout.
It is in an industry that seems to be getting a rotation into it. I am noticing a lot of nice charts in this sector start to setup.
BTW, If the 20 dma works for you, wonderful. However, historically, the 20 dma is not used by the best performing funds when supporting stock.
The 50 and 200 dma are the stomping grounds where the big boys come in to support their stock holdings.
So, normally 20 dma are way less reliable. But heck it sure makes a great cut loss and support area. I have to say that.
Hi Josh:
Marty "Buzzy" Schwartz profiled in one of the 2 "Market Wizards" books, and later in his own book which is a great read, "Pit Bull", says his favorite indicator is the 10 day exponential moving average.
I personally find it very helpful both with stocks and indicies.
Enjoying your Blog and all the comments.
"A Friend" of your BLOG
sorry for the double posting....computer foul-up
"A Friend"
10 day moving average is good for short term traders.
I dont care about short term trades. I am in this to make big money.
To do that you have to trade the long term patterns and the big mutual funds, pension funds, endowments, and other institutions NEVER use the 10 day moving average to support stocks.
The 50 and 200 dma are where they step up to. If you want to waste your time trading around the 10 day moving average, fine. But on this blog I stress making the big money and the big money does NOT pay attention to the 10 day moving average.
Now, when I trade stocks like BRKS. Yes, it could be a great place to use a trailing stop.
But I want to just say that it is not the most useful of trend lines. Only when trading sub $10 stocks with poor fundamentals should you even think of using this as a trailer.
If you buy IBD stocks, you should NEVER use this line. The best stocks need time to produce the 400% returns BOOM gave. How did the 10 dma help me there?
It is all relative
man this market is tough this year- up down up down...keeps me humble. i love all this negative news w/ record defecit, sky is falling, inverted yld curve,etc...its going to set up some nice buys
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