Last week was brutal to market as a result of earnings warnings, and this may only be the beginning. Like before, we can start to recognize a bottom when we get bad news and the market, even the individual stock, just yawns. But until we starting seeing that resilience, you can expect the volatility to continue.
The market internals are bad, but the screened stock ratio actually had a mixed Friday, giving a neutral to negative reading at 7.1 to 7.2 favoring selling. Risk remains high so we'll remain in "lite" mode.
Last week we managed to find the strong stocks in the strong groups. Going into this week the strength looks to be in the same Biotechs, drugs, healthcare and REIT's.
Note that we have positions in DRMD, EBAY and ELAN on Monday's watchlist.
Long: BVF, CMX, CPRT, DRMD, EBAY, ELN, ENZ, FITB, PCP and QTRN.
Good Trading!!
Sam
savvy-trader.com |
