Stocks finally pulled back, as I suggested it was time for them to last night on my blog. An unexpected jump in core producer prices got the blame as inflation worries became the topic of the day on Wall Street. The good news is that the weakness was supported intraday and stocks finished well off their lows.
At the close, the SP 600 and Nasdaq led to the downside with .8% losses, the SP 500 fell .4%, and the Dow Jones Industrial Average fell .3%. The IBD 100 did its job by not leading to the downside, only losing .5%.
Volume was higher, giving the indexes another distribution day. This was the second distribution day in five sessions. However, the intraday support makes it hard to call this a clear distribution day. Breadth was negative by over a 2-to-1 margin on both the NYSE and the Nasdaq.
I did not have ANY stocks break down, during today's session. Therefore the pullback doesn't have me worried at all. But two distribution days in a five sessions is a reason to keep an eye open for more. But, once again, unless my charts start rolling over this looks like nothing but a normal start of a pullback after a very strong market advance.
Another positive was leading stocks. I didn't see any breakdown. The fact that none of those stocks broke hard, along with my longs acting fine is enough of a reason to stay bullish on this market, even if we get a 5% pullback. My charts are going to have to simply breakdown before I become a bear. There is still NO reason at all for me to be bearish on this market.
Earnings, earnings, earnings...that is all that we are going to hear about for the rest of the week. So enjoy an earfull of BS from your usual CNBC talking heads. I will see you at Investors Paradise. Aloha!
New Swing Longs: MVSN ???? ITC
New Swing Shorts: NONE
Longs Up Today (low vol non-IBD excluded): RMTR-60 CLEC-51 IIVI-32 MWRK-34 DA-38 SOFO-29 RNST-27 BOT ICE UAHC ISE JST CHINA BITS VOCS PRFT NITE DIVX ETE PERY AHS AWH NSTC HRZ AYE BONT LWAY LTM LINTA DUCK CGX FBNW FORR PT ISYS HOTJ ALXA TRAK CVLT CCOI OSIP ALTH FSH ETR MEH SVNT VARI NXL GSTL SMP PEI NUVO REGN MYE NFLD VVI AIQ STZ RMR
Shorts Up Today: DDE-20 HYDL-17 ASA SM MDG TDW
Cover Shorts Completely: KMP KMR
Stocks On Radar Screen: TSTC MCRS KSW RVBD ICFI LVLT INPC SIGM CMS SNMX FSII
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