Market Monitor | stockbee


Market Monitor

  • Sellers in control, bounce quickly faded.
  • Selling is concentrated in NASDAQ, S&P and Dow Jones still not witnessing major selling.
  • Drip, drip selling with only 145 stocks down 4%. Real sell offs have three to five 300 plus days in the beginning.
  • After few days some sectors should work. At such turns it is critical to focus on sector action. Corrections lead to sector rotations. Sectors which are not dented by correction like Metals, Energy, Chemicals, Aerospace and Defense, Automobiles, Transport, Health Care, etc. will be my focus once market stabilizes.
  • Current readings on Market Monitor show this as more an intermediate correction with possible more long side move ahead. There does not seem to be too much of a hurry in selling. Shorts might be walking in to a short squeeze trap.
  • A few weeks of weakness like this might be good as both IBD 200 and Double Trouble have best performance after few weeks of correction. That is when you get many breakouts on stocks which are not overextended.


Mike G said...

Erm, stockbee, I enjoy your site, but I have to question the sector rotation point you make here in the event of market weakness; I was under the impression that the more defensive sectors are financial and consumer oriented, not the "cyclical" type businesses you list such as metals and industrials.

Pradeep Bonde said...

At this point I see no flight to safety. This looks like a garden variety pullback/correction in market. Atleast S&P and DJ.

hottpotato said...

PD CPA is in the watch list and it looka like its going to pop-i know you do not believe in shorting but is this what this stock is signaling because its gone parabolic?

Pradeep Bonde said...

CPA is not going parabolic.