Stocks did the same thing they basically have been doing for the past month, finishing the session in the red. A late day rally helped ease the pressure of the selling but by the end of the day stocks were still red.
The SP 600 fell .7%, the DJIA fell .4%, the Nasdaq fell .3%, and the SP 500 fell .1%. Further proof that the selling is still in full force was the IBD 100 falling 1.4%. Leading stocks leading to the downside is simply not bullish.
Volume was higher across the board but the tails (intraday support) on the daily charts today indicate that it could be near-term support. I would not put too much confidence in this support, if in fact that is what is happening. There is still too much damage out there to be confident that these lows can hold. Could they? Yes but odds of failure are very high.
Breadth was also poor with negatives over advancers by a 2-to-1 margin on the NYSE and 3-to-2 on the Nasdaq.
The fact that we are almost into day 10 of the attempted rally from the May 24 lows and have not seen any strength in any new leading stocks also adds support that this rally attempt will not follow-through. Also the DJIA has already failed its May 24 low and is now in a downtrend in all time frames.
How long is all of this going to last? I don't know. No one does. So stop asking. Selling always last longer and go further than what most pundits think it will go. Another thing is you don't need volume on the downside to fall. On the other hand, to make strong gains on the indexes you NEED big volume. If buyers disappear, stocks will simply fall on themselves.
Keep cash heavy, as I keep saying over and over, while we are in this nasty downtrend on the indexes. Bounces simply can not be trusted at this point and new buys simply should not be taken if you are new to stocks. I know this seems hard to do but come talk to me after this downtrend is over. I would like to see how you did on the knife catching side of the game.
Have a great Wednesday! Great luck and stay in cash!
New Swing Longs: BIDU JCP PPHM FORR SABA
New Swing Shorts: NONE
Longs Outperforming Market: VTS-35 ICTG-99 ANEN CTCI CXW KEYS-32 RSTI-37 CYMI MORN DDE GISX LMIA-104 HSR TYL EGOV PCLN BAM-34 PNRG-62 AKAM-90 WST PKE ASPV LRCX-33 EGY UVN LYV OPTV LCC-125 Q-66 OMCL ABI DDS RBAK-241 MGLN MU SHLD ECOL-41 PMTR-63 SMF
Shorts Outperforming Market: CRXL SWC JOYG USG ASA DIA EWY CE DB ILF AMAT IYM EWZ RF RES
Stocks On Radar Screen: XNR
No comments:
Post a Comment