Although the market was acting rather perky this morning ahead on good earnings reports from BBY and GS, not only were those reports sold, but they also dragged down their respective sectors as well, and that does not bode well for this market going forward. Weakness and in the both financials and consumer discretionary weighed on the broader market, taking back most of the gains from the fragile oversold bounce which began last Friday.
Despite the poor overall action, there was some aggressive trading in the same groups that have led for most of the year. Solars, fertilizers, oils, steels and coal stocks attracted plenty of momentum money, and like we said earlier, that is where we need to concentrate our efforts if we want to make some money in this market. We’ll leave the bottom calling in the banks and retailers to others.
Still, while there are some chances for some short-term trades, the major indices are looking rather precarious from a technical perspective. As such, we are making sure that we are keeping our time-frames short and our stops tight.
Have a great evening and we will see you tomorrow.