My Take on Market.

At close the Nasdaq eked out a fractional gain. The S&P 500 fell 0.2% and the Dow Jones industrial average ceded 0.4%. A disappointing report on home sales Wednesday didn’t seem to affect the market much, but the market slid in the final half-hour to close mixed. Existing-home sales slipped slightly in February to an annualized rate of 4.59 million units, just below expectations for 4.60 million.

I noticed few things today that struck a chord somewhere –

Reversals

Almost all the breakouts reversed today, some gave in their gains. Look at ALLT, FRAN, LNKD, ASGN, IWM, etc. Ok! ASGN might be an exaggeration;)

Not Ready to Party

OIH, oil service companies, some industrials that sport cheap multiples, and small cap stock index seem to be reluctant to join the band wagon of Nasdaq and S&P 500. OIH, $RUT, and companies such as CAT, CMI, F, etc have underperformed SPY and QQQ. In fact they have been flat for almost 20 sessions. The oil service company phenomena can be explained by cheap natural gas prices but what are rest waiting for. China PMI!

Divergence

There is divergence between stock price and MACD, specially the some stocks that have been leading thus far e.g. FFIV, LULU, STX, URI, etc. But some leaders have been marching ahead like a freight train such as AAPL, PCLN, ISRG, CMG, etc. See Below.

Momo Stocks are missing in action

Lastly, there seems to be a dearth of good stocks to own. Of course there are oil service companies and industrials but all the high growth stocks are going sideways.

Hmmm!

I think we might go side ways for sometime. So the million dollar question is – should I take some (more) profits off the table? But again if we see a correction, it will be short-lived, creating more opportunities. After all the 800 pound Gorilla is on our side.

Is this a Joey Tribbiani moment? Can someone enlightem me?

Some good reads till I ponder about my next move –

Goldman is bullish (BL)

Keystone XL (BL)

Home Sales Fall but.. (REU)

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