We continue find good long trades, but remain cautious.
I'm hoping that with the real start of earning season tomorrow we will see some support in the market as it recognizes that a level of disappointment is built in. In the meantime, the market internals and the screened stock ratio remain negative, so "lite" mode is again the safest positioning. The screened stock ratio showed even stronger action in the downside stocks today, at 12.9 to 3.3 favoring selling. Risk remains high.
The strong groups remain the same but with the biotechs dropping, and healthcare climbing up the ranks. I'd concentrate on the strong ones and pass on the bounce plays as long as the market remains so weak.
Speaking of strong stocks, CNBC ran a story today on the strength in education stocks, something we've seen for a few weeks now..
Long: ACF, AT, BKS, CVX, DHI, HCR, JCI, JNJ, KG, and WM.
Good Trading!!
Sam
savvy-trader.com |
