Tuesday, October 09, 2018

Market Alert - Last Hour

Moves higher turning to flat and negative as the market fails to hold the gains. No change in index status and that can be good or that can be bad. With the bounce attempt fading, nothing is really good.

Nothing but the same stocks that are performing. Drugs solid (e.g. PFE), retail still good (e.g. WMT, ROST), energy solid (e.g. APC). Techs have frittered away some pretty solid gains.

Stocks did make a recovery move in the afternoon session after the early gains were sold but the last hour saw some weakness then a big bar downside and that pushed SP500 negative and peeled back almost all of NASDAQ's gain. Thus, in the end it looks as if the market could not hold a gain.

That is a sign of weakness of course, particularly after the preceding selling. Even so, SP500 is holding the 50 day MA, DJ30 the 20 day MA, RUTX and SP400 the 200 day MA. They can stay at those levels several sessions and try and pound out a bottom. At this juncture, however, with the failed bounce attempt, the bias ahs to remain downside near term.

We picked up some DIS and are looking at MSFT as it bounces off its 50 day MA, but its volume is looking low. As it is a tech, may have to pass on it today. ULTA bounced but volume is light as well and it has faded off the high in a not very impressive move. Closed a couple of positions with trailing stops and may end up closing a few more. Most are status quo, but that is not necessarily comforting as they need to put in a recovery. Watching to see if they can catch another bid in the last half hour but not holding my breath.

Bonds are up with yields a bit lower, but the market does not care about that at this point because it has not broke the trend.

SP500 -2.80, -0.10%
NASDAQ 8.03, 0.10%
DJ30 -43.51, -0.16%
SP400 -0.51%
RUTX -0.40%
SOX 0.03%
NDX 0.31%
______________________________________
Jon Johnson, Chief Market Strategist
InvestmentHouse.com

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