Tough day when the shorts gap down making them hard to enter, and the long bounces have questionable staying power. Some thoughts from our commentary for tomorrow....
At some point you would think the market would adjust to the realities of the election non-results, and that will happen in time. But the longer it goes on the weaker the market recovery may be. We can hope the election turmoil will be resolved this week. However, there is one thing that came to mind that could potentially effect the market. I was listening to what was being reported overseas about our election and didn't like what I heard. They are losing faith. Watch for weakness in the dollar, if the dollar falls, stocks will follow. A major sell-off in the dollar may result in foreigners pulling assets out of the U. S., and do serious economic damage. I don't think this is going to happen, but it is something you should pay attention to. I'm sure the potential effects on the dollar hasn't been missed by the Federal Reserve, and this may influence tomorrows (Wednesday's) FOMC meeting.
The market internals remain very negative, we are oversold and due for a bounce, but be cautious on any suspect rallies. The screened stock ratio is still very negative, 10 to 3 favoring shorts. Remain in "lite" mode.
Longs: CLS, CSWC, FDO, OAT, CBE, CEFT, UTEK, EFX, LIZ and BOW.
Shorts: AMGN, FCOM, PSFT, SUPG and GELX.
Good Trading!!
Sam
savvy-trader.com |
