The Ugly Week--That Saw The Rally Attempt Fail-- Is Over; Happy Belated Bastille Day (The French Could Fight????)

The ware in the Middle East and the rising oil prices dominated the headlines all day, on Friday. Of course, that meant, with the downtrend already in place that stocks sold off again.

The SP 600 led the fall with a 1.4% loss, the Dow Jones fell 1%, the Nasdaq fell .8%, and the SP 500 fell .5%.

Volume fell on both the NYSE and the Nasdaq. Breadth was negative by a 2-to-1 margin on both indexes. Pretty much a negative day with not a lot of players around. But volume was still above the 50 day volume average on the NYSE.

This was a nasty week that saw the Nasdaq and SP 600 fall 4%, the Dow fall 3%, and the SP fall 2%. I don't think words are needed for that performance.

The indexes continue their march below their 50 and 200 day moving averages and all are close to committing the ultimate "death cross" that have not already done so. This market is very very bad for investors. I am seeing some weekly, monthly, and quarterly negative divergences and signals being given. This only adds to the negative price and volume action of the market. Not good at all.

The market tried when it followed-through on June 29 but a month after the start of the rally attempt we now have the Nasdaq trading at new lows and the other indexes trading horribly and ready to join the Nasdaq in the "death cross"/new lows camp.

This week should be wild and full of surprises. We have the war in the Middle East, North Korea resolutions, economic data, some Fed excitement, and most importantly EARNINGS! We will start to get our first full batch of earnings on Monday.

No matter what happens this week, remember, this will pass and another bull market will be around the corner. I don't know if the corner is three, six, nine, or twelve months away. But trust me!! there will be another bull market full of stocks making HUGE gains.

I shall see you at Investors Paradise. Great luck out there.


New Swing Longs: LMT ABFS

New Swing Shorts: CBSS BKUNA GE WFSL PDCO ESIO NTE

For charts on longs and shorts go to Investors Paradise.

Establishing A Position/Poking (DO NOT REPEAT THIS TRADE): BDCO

Longs Outperforming: TRMA AKAM-104 GMTC CXW LRCX-26 KHDH TZOO

Shorts Outperforming: CRXL JOYG BPFH USG ELY WSM AMAT TRI MEOH VCG ZRAN MAFB BTH APOL FRZ ISCA BBBY GYI XNPT PBE MAS PII CXG AMMD EWG RCNI POOL TRMK DB EWQ PWC VO OPTN IYT TM PLCM SUPX

Stocks On Radar: RGNC TTG FRGB