The Best Place To Be Right Now…
The
market’s pressure has now spread to the internet sector and we took a
distribution day on the NYSE as volume came in heavier than yesterday.
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I have been saying that this
market lacks leadership and volume for months and these problems are coming to
fruition as the indexes sell off. Internet stocks were the closest thing this
market had to leadership, and Ebay started seeing heavy selling over the past
three days. Yahoo (YHOO) was the second name to get hit. Now both
stocks are trading below their respective 50-day moving averages.
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Just as I was mentioning that
Axcan Pharma (AXCA) was hanging in there, its breakout failed! The stock
has now undercut it pivot point of 20.10 on above-average volume.
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For now, the best place to be
is cash. I do not usually push shorting stocks because of the difficulty, but
if you practice this, it would be best to wait for the first bounce before even
considering a move.
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Inevitably, this market will
get back on track. I believe a decline right here is necessary and the fact
that we are seeing weakness right now is actually something I have been waiting
for.
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Tim Truebenbach