I haven't expected an interest rate cut this week, and when we discussed this last week we recognized that the market would not like not getting a cut, however, even I'm surprised at how the relentless the selling has been. Yesterday we got a bounce again, but, "it will be questionable how far a bounce will extend" understated the lack of extension. We have avoided going into "lite" mode because there has been stocks moving up, just not many growth stocks. Since the stock screening is now showing volume increasing in the down moving stocks, it may time to be cautious with even the non-growth stocks that have moved the last month.
The market internals have now lost what they gained on Monday and the screened stock ratio remained at 11 to 3 favoring selling, a "lite" mode number.
The screening is a variety of stocks that have held up, but go "litely" into these as well.
Longs to watch: ARW, ASD, AVP, CYN, DNY, DO, GLC, ELN, RL and TEVA.
Good Trading!!
Sam
savvy-trader.com |
