The market internals have followed the indices back into the negative range. That, along with the screened stock ratio at 7.9 to 3.3 favoring selling, raises the risk back to high, putting us back in "lite" mode. The good news was that there was less conviction in the stocks moving down Monday, compared to the stocks moving down last Friday. Usually the Fed meetings produce a positive day, so I'd be surprised to see a real bad day tomorrow. But we will trade cautiously anyway.
The biotechs didn't completely drop from the picture, but they have had to face enough profit taking the last two days to bring them off their pedestal. Many of the strong groups got some selling yesterday which makes the watchlist a better mix, yet not necessarily a better overall performer. Education stocks were the standouts in the screening, APOL, CECO, EDMC, ESI, and SLVN all showed up.
Note that we have a position in CVD on today's watchlist.
Long: AOT, AW, BAX, CTXS, CVD, ESI, FISV, FTU, IRM and YHOO.
Good Trading!!
Sam
savvy-trader.com |
