If The Market Does What YHOO Did, We’re Headed Lower

The market continues to meander through a dull and
potentially dangerous situation.  Volume has been anemic and we still haven’t
seen an above-average volume day of any significance since 5/12.

 

 

As I have been mentioning over the past couple of weeks,
there have been a few breakout plays in the growth arena.  At this point,
nothing spectacular has occurred and other than scalping a few stocks for
quick profits, there has been very little to do. 

When the market has not thrown anything in the way of
overwhelming evidence our way and growth stocks have not made nay impressive
moves, other than off of bottoms no one could predict, it is best to sit it
out.  The NASDAQ rallied about 7% off its lows and is currently seeing its
first pullback, after practically going straight up.

Yahoo! (YHOO) and other leading stocks faced some
distribution, or selling on above-average volume yesterday.

 

If this occurs in the market itself, we may be headed
lower rather quickly.  As long as price and volume does not appear too
threatening, short-term trading seems to have worked if profits are taken
quickly.  Otherwise, it is probably best to stay away from the market for now.