The Market is resilient but there are cracks under the surface
The market put in a respectable close. Key stocks such as AMZN and EBAY put in very strong performances. AMZN although its performance was "amazing" may have been a large mix of short covering and relief rally. Overall volume on the NASDAQ was healthy and the internals on both the NYSE and NASDAQ closed the day slightly positive. A steady recovering bid in the Small Caps helped account for the turn in overall breadth.
ERTS turned in a respectable day despite the recent negative news flow. However, it should be noted, certain key stocks such as BA and SUNW closed at the low end of the range, which implies that the "sell the news" mentality is still around. Action in bell weather stocks like these is an early indication of overall market trouble.
The underperformance of the Semi's is of the most concern. Perhaps this is just a one day rest but in order for the NASDAQ to continue and breakthrough near term formidable resistance, the action in Semi's must improve. We will be watching the action in this group as well as the Small Caps very closely. Of course, should Oil decide to continue its most recent uptrend, that will also hinder the NASDAQ from breaking past key near term overhead resistance.
We believe that it may be to early to aggressively short the major indices, but more attractive buying points will most likely reveal themselves soon.
TASER TO HEAD: We're still buyers of under the radar and non market correlated stocks.
Hope you traded well. ___________________________________________________
The analysis, opinions and/or forecasts expressed on the Kcap Trading Blog (âKTBâ) 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 (âKCAPâ) 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 firmâs 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.
___________________________
ERTS turned in a respectable day despite the recent negative news flow. However, it should be noted, certain key stocks such as BA and SUNW closed at the low end of the range, which implies that the "sell the news" mentality is still around. Action in bell weather stocks like these is an early indication of overall market trouble.
The underperformance of the Semi's is of the most concern. Perhaps this is just a one day rest but in order for the NASDAQ to continue and breakthrough near term formidable resistance, the action in Semi's must improve. We will be watching the action in this group as well as the Small Caps very closely. Of course, should Oil decide to continue its most recent uptrend, that will also hinder the NASDAQ from breaking past key near term overhead resistance.
We believe that it may be to early to aggressively short the major indices, but more attractive buying points will most likely reveal themselves soon.
TASER TO HEAD: We're still buyers of under the radar and non market correlated stocks.
Hope you traded well. ___________________________________________________
The analysis, opinions and/or forecasts expressed on the Kcap Trading Blog (âKTBâ) 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 (âKCAPâ) 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 firmâs 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.
___________________________
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posted by Kleiner Capital Management, LLC. | 5:02 PM
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