INTC and the June Fed minutes showing uncertainty amongst members on the future path of interest rates held stocks hostage today, sending all the indexes lower and erasing all of the Nasdaq's previous day's gains. That kind of action is not what you want to see on day after a rally. Not a healthy day at all.
At the close, the SP 600 led to the downside with a 2.9% haircut, followed by the SOX index 2.5% loss, the Nasdaq lost 2%, the SP 500 fell .9%, and the Dow Jones Industrial Average retreated .8%.
Volume was lower across the board but who cares when the selling was so brutal that it erases all of the previous days gains. Breadth was negative on the NYSE by a 2-to-1 margin and by a 3-to-1 margin on the Nasdaq.
The indexes are all still in a solid downtrend and it shows how silly it is to try to anticipate an upcoming rally by jumping in too early and getting too long too fast. It is simply a losing battle and not the kind of fight I want to get involved with. This imediate reversal just confirms how eager sellers and trapped longs are to dump stocks that they did not sell when the indexes were falling hard.
If the after-hours is any indication of tomorrow, there should be a slightly positive tone. GOOG and MSFT had overall positive reports and we shall see how long this good news last. For some odd reason I am not too confident that it will. But I wouldn't mind being proven wrong. It is very humbling.
This is a crazy market for most traders. Hopefully, CANSLIM investors have stayed out of this madness or have been shorting the old leaders that have broken down from topping patterns. If you have been reading this blog, I have said numerous times not to be trading in this market environment. Especially if you are a newbie. I hope you have heeded my call and did not jump in too early AGAIN and then got burned AGAIN today. If you did, all I can say is stick with and learn from your mistakes. Don't repeat them. The smart money stays on the sidelines when the odds are not completely stacked in his/her favor. Right now the table is loaded with sharks.
Keep calm, stay patient and positive. This too shall pass. Great luck tomorrow. I shall see you at Investors Paradise.
New Swing Longs: NONE
New Swing Shorts: OEF MWIV VV HCBK VXF VB HVT WTI WERN CSX RCII FRC RS
Longs Outperforming: GMTC UARM RNST LMT Q-71
Shorts Outperforming: CRXL SWC JOYG BPFH USG ELY WSM AMAT RTP RES MEOH IKN ZRAN MAFB APOL FRZ ISCA GTRC ITWO CTCO XNPT PBE MAS TXRH ULTI PII CXG AMMD AB EWG RCNI POOL UPL DB EWQ PWC VO OTPN IYT PLCM SUPX GE WFSL PDCO ESIO C AME HTLD BLK
Stocks On Radar Screen: BOT IGT DMX
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