Special Risk Capital Management LLC

Market Stumbles April 24, 2016

April 22, 2016 – Sorry this post is rather late, but I’ve been traveling.  Friday was an interesting day because for the first time in quite a while, it showed weakness on increasing volume.  It was a narrow range day with the Close about where the Open was.  Not much price damage but the market internals did take a hit.  The bigger question is whether this is the “normal” “Buy The Dips” that we’ve been accustom to?

We’ve retraced back to the 4905 level but I’m now showing volume increasing on down bar moves (red arrow on Distribution volume).  So far that has not shown up in the “Money Flow” indicator (above), but the trend line has been “gently broken”.

So far it just looks like minor selling and perhaps nerves about earnings (Microsoft & Netflix were not that great).  Next week we see a number of high visibility names showing first quarter earnings, and that should set the tone for this market.  Either continued weakness (correction) or just a minor “blip” down.

Here’s where I’m seeing strength in the markets now:

The good news it’s fairly broad in coverage.  In the S&P 1500 stocks, her’s why I see strength:

The majority of them remain in Accumulation mode.  Now, that could change in a few days IF weakness remains and selling increases, but so far . . that’s not showing up.

Got to go, have a good week !        ……………..  Tom  ……………….

price chart by MetaStock; pie charts by http://www.HighGrowthInvestor.com; used with permission.