Stock Indexes Fall Hard On Lower Volume; Fear Is What We Need To Keep The Bears From Becoming Bulls.

A jump in bond yields and a strong jobs report was the culprit of the day, according to the talking heads at CNBC. As we know already, that is just an excuse to try to explain the selloff. The selloff wasn't that bad but was the worse drop we have seen in five weeks. The SP 600 fell the hardest at 1.2%, followed by the SP 400/500 down 1%, and the Nasdaq lost .9%.

Volume was lower than the day before, on all indexes. Breadth was negative by a 4-1 margin on the NYSE and 2-1 negative on the Nasdaq. That poor breadth combined with the low volume has the feel of a market with fewer buyers than more sellers. What I mean by that is that instead of funds coming in and selling en-masse they simple stepped aside and let the few sellers that showed up to simply take stocks down without putting a bid underneath to support it.

I, personally, don't see much worrisome about today's action. We need day's like this to keep the bears from becoming bullish. By keeping them bearish and shorting that only gives the bulls more fire for the upside as the bears will be forced to cover there shorts for losses as prices continue to rise. By looking at the AAII number you can see the past week brought on a lot of bears to the bullish camp. A pullback can help reverse that number or at least prevent it from rising.

I apologize, once again, for the delay in the post. I am still dealing with some personal issues.

See you on Monday!

New Swing Longs: NONE

New Swing Shorts: NONE

Longs Outperforming Market: STRL COGO-28 ERS-248 NNDS-33 BWLD PNRG-61 TMI-30 RATE-151 OXPS RSTI-40 STX-29 SCVL RMBS-25 HOM NMR-45 SCHK-37 UVN QCC AAU SSW PEIX-56 OMNI-36 SATC-41 TMTA NENG-35 TVIA MSPD-47 MT IIP-65 CNXT-69 SVNT AGT-38 BEAS-27 RNWK ICTG-78 WF MDM-26

Shorts Outperforming Market: NONE

Stocks On Radar Screen: SPSN DEIX

Run Away As Fast As You Can: LMLP -- Leaving with a 4% gain.

Final Sell Of A Longer Term Winner: ORA -- 43% gain, SAY -- 24% gain

Signal To Lock In Some Profits: MRB -- 86% gain. This is just a point to sell some shares. The intraday action and daily chart shows that there was plenty of support to the day's selling.