Downtrend confirmed again

The market did indeed breach the low of NAZZ 2152. The downtrend is solidly in place. Even if the market were to rally this afternoon, the fact that we made a new low suggests that short sellers will use strength to sell into. The breadth is lousy which is starting to indicate that fear is building up. Consumer sentiment numbers were released and didn't help the situation either.

There is good support on the NAZZ around 2135. We hope to start slowly deploying some of our cash around the 2140 level. This will most likely be a little early but that is why we choose to scale. Ideally we will get to a more neutral position of around 50% - 60% invested within a NAZZ target range of 2100 - 2140. Again keep in mind that we are prepared to buy at higher prices should the internals improve, especially since we are finally starting to smell some fear.

We are putting together our shopping list of stocks to buy. Hope you have cash and are doing the same.

___________________________________________________
The analysis, opinions and/or forecasts expressed on the Kcap Trading Blog (“KTB”) are for informational purposes only and should not be relied upon in making investment decisions. By using this site you agree that Kleiner Capital Management, LLC (“KCAP”) and its principals are not liable for any action you take or any decision you make in reliance on any content. Please be aware that there is no commitment by KCAP to update the KTB. Furthermore, there may be inconsistent timing and follow up (if any) of posts.
None of the information on KTB is considered individualized investment advice and should not be construed as a recommendation or solicitation to purchase any securities. Reliance on information provided on KTB in no way establishes an advisor-client relationship. Investors are encouraged to seek the advice of a qualified investment professional prior to investing funds.
Clients of KCAP, as well as the firm’s principals and other employees, may be invested in securities discussed at KTB. However, any mention of said securities is not intended to influence market conditions for the security to the benefit of KCAP clients and/or principals and employees. KCAP is not affiliated with any advertisers on this site and does not endorse any of their content. For additional information and disclosures, please visit www.kleinercapital.com.
The information on KTB has been furnished from sources we consider to be reliable, but no guarantee is made with respect to accuracy.
___________________________

Click Here To E-mail Comments