Other than day trades, there is little compelling reason to buy a tech stock, you certainly don't what to be holding anything that could warn or be a blood relative of something that warns. And, next week looks to be as rough on the techs as this week was, since we may get big warnings prior to earnings season. Unfortunately, we haven't any longer been seeing the signs that the stocks are resistant to bad news, like we did a couple weeks ago.
Even the volatility index didn't look like we would get a bounce tomorrow. And the market internals continued down Thursday. The screened stock ratio remains negative at 12 to 4 favoring selling. The "lite" mode saga continues.....
Every day we run two screenings for weak stocks, one of those makes up 1/2 the screened stock ratio. I took a look at the weak stock screening tonight and was surprised to find that over 10% of the stocks were oil related. Additionally, there was as high of insider sales as there was in the tech stocks last fall. (a few of the stocks that appeared with high insider sales include names we have traded in the not to distant past: APC, BJS, ENE, GLM, MND, NOI, SII, SLB, VPI and VRC) This has spooked me from the sector. The strong groups are again the medical/biotech/healthcare, insurance and waste management stocks.
Longs: AAS, AZO, BAX, BJ, CI, CMX, CTX, MFC, FWC and STJ.
Good Trading!!
Sam
savvy-trader.com |
