Make This Your Main Focus
The Nasdaq rally still lives, although after-hours
trading points toward a lower opening that should end that. Meanwhile, the
Dow and S&P 500 ended their attempts by taking out the recent lows.
I am seeing a few stocks pushing higher, but this is a
tough game to play while the overall market struggles.
Marvel Entertainment
(
MVL |
Quote |
Chart |
News |
PowerRating) is hitting new highs, but
daily volume has been declining. New highs on lower volume
usually ends a rally.
The market seems to be taking bad news very badly. There
has not been much buying interest other than to run the shorts in from time to
time. For the past week I have been looking for a place to get short some of
the lagging indices and ETFs in the service I
manage, and the market has not been that accommodating.
We had one brief rally on 1/28 that allowed entry as
volume came in from the previous day. After that rally, we have only headed
lower as buyers seem to be on strike.
I will be making a careful search of potential leaders
and secondary indicators over the weekend. With any luck, I’ll be able to get
a better fix on the potential duration of this decline, and I will share it in
my column on Tuesday.
At this point, I am staying cautiously on the sidelines
while looking for potential short opportunities in the
ETFs for a very small portion of the capital. We remain in a very
tough market for any time frame and the main focus should be capital
preservation at this point.
Have a great weekend,
Timt@tradingmarkets.com
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