Nerve
A number of the high relative strength
breakout stocks continue to hold up well despite the ongoing pullback in the
major indexes. This is because these leaders for the most part do not come from
the big-cap tech arena which so often has fooled the perma bulls into buying the
bottoms.
Stocks To Open Lower
Stocks appeared headed lower Friday as more corporate warnings weighed on equities.The government reported a benign inflation environment with the Consumer Price Index increasing 0.4% in May. The core rate came in at 0.1%.
New Ideas Thinning
The market is generating fewer and
fewer valid setups from my perspective. That’s a yellow light, not a red light.
It’s a sign that a trader should look to partial profit-taking to lock in gains
and become less aggressive until the market shows clear evidence of a new leg up
in the current rally.
How News Hit The Indexes
More negative news weighed on the
techs Thursday while a stymied merger took the Dow down a notch.
Weak Open
Stocks appeared set for a weak open
Thursday following more corporate warnings indicating a struggling economy.
What Market Seeks In The Economy
Techs and blue chips gave more ground
Wednesday amid further signs that U.S. economic recovery is further off than
some had hoped.
Base Builders
A few of the high RS
stocks appeared Wednesday to be forming in-progress bases. These are not
prospects that would show up if you were bottom-fishing in big-cap tech land.
The new leadership since April has come from other sectors.
Stocks To Open Flat
Stocks appeared headed for a flat open
Wednesday after the Government reported a weaker-than-expected increase in
retail sales.
Stocks To Open Lower
Stocks appeared headed for a flat to
lower open Tuesday after more corporations issued profit warnings and signs
U.S. economic weakness was spreading overseas.
Why Turnaround Suggests Strength
Blue chips fought their way back from
a weak open Tuesday while the tech-heavy Nasdaq pulled out of the red to finish
the day flat, overcoming a spate of negative news issued before the open.
Intermediate Range Radar
As the market consolidates, I’m
finding fewer high relative strength stocks setting up. However, as I’ve noted
in past commentaries, plenty of breakout leaders are holding up. So we still
appear to be in a healthy consolidation phase rather than a failure of the rally
that began in April.
Soft Open As Techs Warn
Stocks appeared headed for a soft open
Monday as the confessional season continued to bring out more expectations of
results shortfalls.