Subtle Distribution In the Nasdaq
And not so subtle distribution in some leading names…
Weeks of Gains Gone in One Day
Strong distribution in the market combined with leading stocks being slammed is not a recipe for higher prices…
Sentiment is now getting too bullish
Despite ridiculously stretched, extended and overbought conditions, the market refuses to correct for even a couple of days.
These sectors are topping out
Very simply, we think the themes are starting to change here. Whether or not these themes affect the major indices is another story.
Politics and the markets
I am no Dick Morris or Robert Novak…so I won’t even try to predict what happens in the elections.
The party looks to be over…for now
Risk has picked up here and more corrective work could be at hand.
The importance of follow-through days
In spite of extended, stretched and overbought conditions, the “market” refuses to correct for even a few hours.
The market keeps on rolling
We don’t believe the market is going to have a down day ever again.
Overbought conditions remain
Not much has changed for the Dow and S&P since we wrote last.
The Fed needs to cut rates!
The bond market is screaming and begging for a cut. Fed Funds are at 5.25% with the 10-yr Treasury yield at 4.64%…
Big-caps look to be leading the way
Take the time to look at the Dow and S&P and compare them to the small and mid-caps.
A near-term low may be in for this sector
This has been setting up for weeks and is now coming to fruition in a big way…