A poor YHOO sales report hit stocks hard until a midday rally helped bring indexes off the lows to a respectable close. Since YHOO/GOOG make up 4% of the Nasdaq it should be no surprise that the market struggled today.
All indexes fell, with the Nasdaq the weakest with a .6% loss, the SP 600 fell .5%, the SP 500 fell .2%, and the Dow Jones Industrial Average fell .1%.
Volume was heavier on both exchanges but the trading in YHOO made up 67% of that increase. Trading in YHOO was 6x heavier than average. Therefore, the increase in volume with the semi-mild price declines wasn't in fact that bad. But facts are facts and volume was heavier. This gave the Nasdaq its 3rd distribution day in 10 sessions. Still the indexes appear fine.
Breadth was negative on both exchanges, with decliners over advancers on the NYSE by a 9-to-7 margin and on the Nasdaq by a 3-to-2 margin.
Even with the negative breadth and price declines today, underneath the market is fine. My charts are acting well and there are stocks setting up in good patterns. The indexes are still in a solid uptrend with breakouts still showing up everyday. Today's intraday dip helped give underinvested bulls a chance to particpate and made some very bullish price reversal patterns on many charts.
The rally might appear to be getting a bit old by now but it is never wise to bet against momentum. Therefore, no new shorts should be initated until the trend is obviously reversed.
I was on vacation and was part of history on Monday night at the LA Dodgers game. If you want to see my tickets, I posted them today on my off-topic forum. I can't even describe what it was like to see those back-to-back-to-back-to-back homeruns. Unbelievable. I have not gone to a baseball game since 2000 at Shea stadium and look what happens!!! Amazing! I am one blessed fellow to be part of something that hasn't happened since 1964 and only happened 3 other times before.
Good reports from ORCL and the FOMC meeting await the markets in the morning. I assume it will take me a few days to fully get comfortable with the true market sentiment. However, if you have been following my new longs, you will see that game remains as solid as can be.
I will see you tomorrow at Investors Paradise. Aloha!
New Swing Longs: ROG DCI VOLC MYE
New Swing Shorts: NONE
Longs Outperforming (low vol non-IBD excluded): CTCI-72 XING CTCM HCSG HURN DDS TDY RSTI MWRK-25 AHS IIVI CGX VARI CXW-28 SYKE-35 RAH CPA LMT VRGY ACGL WGA VTIV IDXX BEAS EMS MEH MDRX MFA IMA DJO GMTC
Shorts Outperforming: SWC-44 ZRAN-27 NTE-42 WTI SPWR IXC EXBD DDE-22 HYDL-17 DO PTR USU GSF CCO TTI MDG KMP KG CPE-15 REP TDW ASA SM
Stocks On Radar Screen: SYX LTM PJC VCP CPAK
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