The Best Strategy Right Now…

There they are!  Institutional
sellers do not just change their minds on a whim and disappear.  They were
around in late-April and early-May, before the lower-than-average volume
summer trading began and it looks like they couldn’t resist the higher prices
we are at today.

 

 

 

 

Today’s declines were led by
the NASDAQ, which produced above-average volume. 
Semiconductors (SMH) have led the market most of the way up and down
and today was no different.  The semis set a lower low which usually indicates
the market is headed lower.  Will this happen immediately?  Maybe not…the
market usually does opposite of what we would think.

 

Some of the stronger stocks
of late took above-average volume hits, but nothing too severe to really harp
on.  Qualcomm (QCOM) and Yahoo! (YHOO) were two examples.

 

 

 

Over the past month or so I
have been saying how this market lacks any leadership.  Right now is now
different as we see recent growth stocks like Engineered Support (EASI)
unable to fight the market’s downdraft.  It is still setting up in a base with
a pivot point of 60.12.

 

 

Akamai (AKAM) broke out on
6/25 and has made no progress since then.

 

 

Axcan Pharma
(AXCA) broke out on 6/18 and is one of the few names
holding on.

 

 

Right now is a great time to
sit back and preserve capital in cash.  Don’t forget, rates are moving up
slightly so it is actually possible to make a few pennies in cash now!