Despite the sell off Monday, the market internals held-up surprisingly well. Much of the selling looked to be more end of year portfolio adjusting, we'll see over the next couple days if there is more to it. The screened stock ratio weakened, however, still positive at 4.8 to 1.2 favoring buying. Do to the weakening of the screened stock ratio, the estimate of market risk moves up a notch to moderate. This is still within the range of buying long on this weakness to support.
Regardless of the selling Monday, the strong groups remain; biotechs, computer services, gaming, homebuilders, software, restaurants and select retail. More details on sectors in this weeks Journal as well.
For what its worth, we saw quite a rotation in the stocks showing up on the screening, often when this happens we see another rotation within a day or two, which returns back to the more familiar stocks, (the ones that have been repeating over the last few weeks).
Longs to watch: APOG, DRTE, FRX, GTK, NETA, RYAN, SKYW, SUPG, SY and WON.
Note that SUPG is a relatively low float, just shy of 15, which is were we usually try to cut the off.
Good Trading!!
Sam
savvy-trader.com |
