Now What?
Well, how’s your
day? I gather if you are long…Ouch. It is simple at this point in
time: Do nothing.Â
I have always…always believed in reality. The reality is the markets have turned into
ugly mode and in short order. Let’s look at the tape.
The S&P 500 has broken important support between 1203 and 1210.
The Dow has broken down off of a reverse “cup and handle.”
The Nasdaq is still holding the 2000 level but that provides no solace as many names have been trashed.
Breakouts…I don’t think so! Stocks gapping up…not! In fact, I am amazed to see how many stocks have gapped down recently on worsening outlooks.
Sectors: Did you see the Semis and
Gaming today? Seems to me that the markets have now lost most leadership.
Insiders: As we have reported, insiders are selling like the market is going to
zero…and this is after major drops. Some of the names we have mentioned have been destroyed in the past week.
I wish there was something to hang my hat on right now, but nothing doing. The technical condition is now obvious…and it usually doesn’t turn on a dime.
Lastly…and I don’t mean to throw salt in the wound…but if the market can’t get going after
six Fed rate cuts, then what?
Have a great weekend!