Market Monitor

• It was a nervous day for the markets. But if you look at number of 4% movers, this was a very mildly negative day.
• Combination of worries like sub prime, weak earnings from past leaders, energy prices is creating a wall of worry for market.
• A correction here may not be a bad thing and not out of character for the market. But at this stage this looks more like some sectors taking beating while pockets of momentum continues to work.
• YHOO, INTL, EBAY, NVLS, and many which are announcing earnings currently are past leaders. They have ceased to be of consequence. The real leaders of this mutli year rally are in the Multi Year Leader scan list. Only six stocks out of that 260 stock lists were down 4% or more yesterday. 13 of them were up 4% or more. If you asked most speculators to name 5 new leaders, they would not be able to, but past leaders everyone is aware of.
  
• AS long as leaders hold up well, one should still give benefit of doubt to bullish case.
• We all no what is wrong with the market or American economy, there is no lack of coverage about that for last 6-7 years, but the market has rallied. May be there are more things right. The obvious question is what is wrong but the contrary question is what is going right.