A gap down in higher volume caused stocks to fall across the board. Even a last hour reversal couldn't help mask the negative tone to the day. Rate hike worries caused by economic data was the reason given for the weakness in today's trading.
The Nasdaq led to the downside with a 1.4% loss, the SP 600 fell 1.3%, the Dow Jones Industrial Average fell .5%, and the SP 500 fell .4%. All sectors got hit today. There were very few places to hide.
Volume was higher on both the NYSE and the Nasdaq. That gave a clear distribution day to all indexes. Today's distribution day was also the Nasdaq's third distribution day since the rally began. In real strong bull markets that lead many stocks to great gains you simply don't see this kind of action. Breadth was negative on the Nasdaq by a 2-to-1 margin and a 19-to-12 margin on the NYSE.
This action of higher volume distribution days and low volume rallies is the exact opposite of what you see in healthy markets. You normally see gains in higher volume followed by calm pullbacks on lower volume.
We are still holding above the lows of the recent rally attempt and that is a positive that we can take away from the market. However, I am not sure, that I would start putting all of my money to work on margin with this technical action in the indexes. This could be a bottom and I could be proven very wrong with my analysis. If that is the case, trust me, I will be the first to turn and start buying beautiful charts breaking out of beautiful bases. So I hope my analysis is proven wrong but somehow I don't think it will be.
Stay patient and keep a positive mindset. This will pass and a new bull market will come along again. So make sure you keep your watchlist constantly up-to-date and fresh.
I will see you at Investors Paradise. Aloha.
New Swing Longs: GPK KONA
New Swing Shorts: CLX PZZA KNOT SKM ARO
**For more information and charts of longs and shorts, go to Investors Paradise.**
Longs Outperforming: OMNI-200 KNOL-159 CVO-122 TWTC-148 Q-83 USEY-54 HSR-54 VLG-40 BAM-33 GPIC-32 HMSY WNR CXW TRMA WTNY IGT LMT FORR BWP DGX DLP SMTX DUCK
Shorts Outperforming: GTRC TXRH RS RRGB CRXL JOYG BPFH USG WSM AMAT RES AVID MEOH ZRAN MAFB BTH APOL ISCA BBBY ITWO GYI XNPT PBE MAS PII RCNI POOL VO IYT SUPX NTE GE WFSL PDCO ESIO AME BLK HCBK VXF VB WERN CSX FRC CAT AF CNI FLR IFX X STLD XPRSA VLTR MAR LDSH EXBD DDE CGX SYNA FDX IJT IJS AHG
Cover Shorts: ELY C
Stocks On Radar Screen: BKD PSPT BDCO STEC
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