Market Monitor: Bearish
- One of those crazy days. 300 stocks up 400 down.
- Today morning before market open it looked like we will have one of those big down day. The Chinese market was down around 5%, Europe was all red and stage was set for a panic low in our market. But that scene never materialized.
- So again we have a bounce without the sellers getting washed out. Which makes it prone to failure.
- Unless you are trading on minutes or hourly time frame and very nimble, there is not much on the long side.
- Those looking for long opportunities should look in to the retail sector which seems to be having a deadcat bounce after digesting lot of bad news.
All the leading sectors are now toast. Sectors which have been leading the market for 2-3 years have all turned bearish and only defensive sectors are now in top 20 sectors. Farm, fertilizer, energy and some metal sectors were the last to break down. The only sector with action currently is the defensive Medical sector. That is not the kind of sector likely to make big moves.