Preserve Capital–Try This…

The
market has been less than impressive and today’s trading was no different. 
Both the S&P 500 and the NASDAQ posted declines on heavier volume than
yesterday. 

 

 

One emerging negative is that
the NASDAQ made a strong push below its 200-day moving average.  Last week,
the index managed to hold this key area of support, but if it stays below it
all bets on a rising market are off.

Individual stocks have been
following the overall market.  With its weight on their shoulders they have
been unable to make any real progress.  World Fuel Services (INT) has
been a unique standout.  The stock has advanced while other names like
Quicksilver (KWK) has declined.

 

 

This market has given us
little reason to invest in it.  Technology was the first area to fail and now
we are seeing it spread to other areas of the market.  The sidelines are not a
bad bet to preserve capital until trading gets easier.