Before we move forward –
- First thing that I did on Sunday night after posting “Deja Vu!” is – I followed my instruction.
- I sold 60% to 100% of my holdings in most stocks. The ones left untouched were – QCOM, STX and APA.
- I will add some APA around $85 and some QCOM around $63.9
- I even parted ways with some of AAPL and PCLN shares. I plan on adding some of them after they correct by 5% or market corrects shows direction .
- I sold a major portion of my most profitable stocks of the quarter such as AAPL, PCLN, SCSS, CLR, SXCI, HLF, GNC, ALLT, FFIV, F and RHT.
- I will wait and see the action of top stocks before I make new purchases or additional purchases. Top stocks that I will be eyeing –
- I sold all the shares of LNKD (a minor portion), WLL (took a major hit), URI and FOSL (recently opened). Last two had gone under water prior to sale.
- I bought TLT, BLV and RWM as mentioned on Monday morning. First thing in the morning 😉
So this is where we stand today.
- The market averages fell sharply as the Dow dropped for the fifth day in a row losing 214 points -1.65%. The S&P 500 lost -1.71% and the NASDAQ was down -1.83%.
- Down volume swamped up volume on the NYSE by a 13 to 1 margin and by 12 to 1 on the NASDAQ. Declining stocks outnumbered advancing issues by a 5.6 to 1 margin on the NYSE and 4.6 to 1 on the NASDAQ.
- Number of stocks above 50 DMA are on a decline.
- Let’s look at the sectors –
|Sector name||Price from 52 Week high||Price from 3 month high|
- The market is approaching oversold territory. Below is the graph of overbought vs oversold stocks.
- The number of stocks declining to 52 week lows have started to exceed the number of stocks new 52 week highs.
- Let’s look at some of the declines encountered by the leading stocks.
Good Reads –
- China surprises with trade surplus (REU)
- German exports unexpectedly rose (BL)
- French economy grinds to a halt (REU)
- European investor confidence sees decline (BW)
- Top forecasters see euro weakness (BL)
- U.S. small business optimism falls (NFIB)
- Weekly retail store sales up +0.5%(ICSC)
- Skilled-worker visas see surge in demand (WSJ)
- U.S. profit growth still expected to stall (BL)
- Goldman’s Dominic Wilson sees more danger (BI)
Poll Time –