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Back at August Lows February 5, 2016

Posted by Tom in Thoughts.
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Here we go again, up to the top and then way back to the bottom of this trading range.  Not fun, as it makes reading this market very difficult.  On Friday, growth stocks (especially tec. based) got taken to the wood shed and beat up badly.  Stocks like Facebook and Starbucks, which had good to excellent earnings, got hammered.  Strong dollar, fear of rising interest rates?  Who knows, they just got sold off.

NASDAQ

We’re now back to the December and August lows.  Next week should be interesting to see if buyers step in at these prices or if the folks just let it drop lower.  There will be some soul searching over the weekend, and I’d like to see a sharp sell off Monday morning with a nice recovery in the afternoon (buyers coming into the market).  Volume was above average, but not by much, it just looked like a buyers strike.  Sentiment turn from Neutral to Negative and our upper trend channel line (in red) still holds.  We need a decisive break above that line and for price to hold.

What’s ding well?  Not much.  Table below tells the story.  (note: A/D = accumulation / distribution)

top sectors

Gold & Silver, Utilities, some steel and some defense stocks are holding there own, which is all you can hope for in this market.  Looks like folks are concerned, and that may not go away quickly.  Bouncing around this trading range could continue.  I remain heavy in Cash waiting for opportunity.

Have a good week.          ………  Tom  ………

Chart by MetaStock; table by http://www.HighGrowthInvestor.com.  Used with permission.

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