A Market To Remember
Just when it was beginning to look safe to go back into the
water! Huge volume “up” days mixed with obvious
institutional selling have made this market one to remember. Tuesday’s hit to
the Nasdaq killed the reversal rally that began last Wednesday. The S&P 500
remains alive, but did, with yesterday’s distribution, show us that institutions
are probably not going to let it run away and produce the follow-through we
would all like to see.
Through the market’s recent struggles,
sentiment indicators have managed to move the right way. The put/call ratio, the
investment advisor surveys and volatility have managed to show more pessimism,
which is what will fuel the next bull market.
Individual issues in the growth
sectors have not been fairing much better than the market.
Direct Focus
(
DFXI |
Quote |
Chart |
News |
PowerRating) has put in the
final verdict and declared its break through the pivot of 33.34 failed as it has
traded 8½% below that point.
Writer’s block and a tough market have
limited my creativity today, so I will be brief and say that the
next thing to watch
for will be a rally and follow-through day. The Patriots
showed the football world that even the most unexpected results can happen,
(they were 14-point underdogs). This is a good thing to be reminded of because
there is no better animal at doing the unexpected than the stock market itself.
Until Thursday,
Be sure and
catch Tim in TWI
chat for TraderTalk, Wednesday at 4:30pm EST. Tim’s lesson is
“Anatomy Of A Winner.”