We started with a typical Monday morning bang, but we finished with a whimper and at the lows of the day. Overall, it was a disappointing day. The bulls had the opportunity to gun us up and maybe even squeeze the bears, but we topped out after just 15 minutes of trading, and it wasn't long before we were in the red. The bulls tried to recover in the early afternoon, but that fizzled as the day wore down, and we finished with a straight-down move and at the lows.
Volume was very light again, but breadth made a major intraday reversal from about 5 to 1 positive to around 2 to 1 negative at the end of the day. Steel, coal, regional banks and chips lagged while pharmaceuticals attracted some interest among those looking for safety.
More damage was done today to key stocks such as AAPL and GOOG. Other key big-caps such as INTC and CSCO never were able to get much going after their earnings reports.
The biggest positive the bulls have had going for them has been the generally strong second-quarter earnings reports, but as we've seen in the semiconductor sector, many people are worried that the cycle may have peaked. Good earnings are keeping some bids under this market for now, but if we have to depend on value buyers to support us, we are going to struggle.
long AAPL; INTC
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