Don’t Try And Force Profits
The major averages showed a major flaw
in the recent rally attempt on Thursday. They all closed lower on heavier
volume than Wednesday.
The day of distribution amid
an attempted rally usually leads to further declines. We have not yet seen the
market confirm this latest rally with more accumulation and now this selling
casts a shadow of doubt.
Another problem with this
attempted rally is from a couple of stocks that have attempted to move through
resistance only to be turned back. Ebay
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EBAY |
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PowerRating)
is one name I mentioned before, and still has seen no volume come in to back
the move.
Able
Labs
(
ABRX |
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PowerRating) is another name that is retreating
most of its move.
Dicks Sporting Goods
(
DKS |
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PowerRating) is another name that
tried to go through a double-bottom base only to be turned back.
Traders that have been
looking for action have been having a tough time. The market has not been
willing to cooperate as it seems to have taken a stance of wearing investors
out by not doing much. It is important to listen to this and not force profits
out of a market that is not willing to give in.
Right now, the best thing to
do is sit tight and focus on preserving hard-earned capital. We will continue
to see what unfolds following this distribution day.Â
Have a great weekend,