Monday, September 10, 2012

INTC AAPL Weigh Down Stocks in Light Volume Session

Big cap technology stocks and financials struggle as the market gives back more than half of last Thursday’s breakout. The good news on the session was the fact volume was lower and institutions were not big sellers. INTC was an excuse for the broad market sell off as the company took down 3rd quarter estimates. AAPL stock hit an all time high before sellers ransacked the stock ahead of its September 12th new product launch. Sellers pushed hard at the end of the day as VIX rose more than 1.85 points. The fear index is still sub-20 mark, but the move at the end of day showed fear crept back into the market. While we didn’t hit a day of distribution this not exactly the type of consolidate we were looking for, but we remain in an uptrend. The lone bit of economic news the market received today was consumer credit. In the month of July consumers reduced credit by 3.28 billion dollars. Economists expected the figure to be at 9.6 billion. It is nice to see consumers reducing their credit and not further their issues with even more debt. Tuesday will be a bit more active, but nothing that will make headlines on the day. Besides, everyone’s attention will be on AAPL’s even on Wednesday and the FOMC rate decision on Thursday. Leading stocks did not fare too well today either. One notable leader TDC was hit hard on the news of INTC. Volume across many names were low, but the price action among them were not kind in the slightest and does create a heighten level of doubt in the market. One day does not make the market, but we cannot see this type of action continue. We’ll need to see the market gain some traction with volume support. It is one thing to be defensive it is another to act on fear. Stay focused on price and where your exits are. Many traders fear they may lose gains and take profits too early finding out later their stock is higher. Know your exits prior to entry and you will not need to worry about anything in between. We aren’t off to the best start to the week, but there is plenty of time for the market to turn around. Ignore the noise and cut your losses

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