Thursday, August 7, 2008

bad day

For a while, it looked like some positive action in technology stocks, most notably Intel (INTC - commentary - Cramer's Take) and Microsoft (MSFT - commentary - Cramer's Take), and weak oil were going to keep the bulls' recent bounce going, but they couldn't overcome severe pressure on financials. As the financials broke down, the profit-taking hit some other sectors quite hard, such as biotechnology, which has been a market leader lately.

Small-caps saw some air pockets, as bids disappeared and breadth was quite poor at almost 3:1 negative on the NYSE. Volume wasn't too heavy, but this was an ugly reversal day and is going to stir up some action among the bears who have been standing aside and letting the bulls enjoy their bounce.

The bulls do have some relative strength in technology and chips, but they are losing financials, and there is a paucity of leadership. I'm quite concerned about the market here and am getting very defensive.

Have a good evening. I'll see you tomorrow.

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