Sellers Take Over as Major Market Indicies Mark a Day of Distribution

Consumer confidence hit a new low, a low not seen since the early 1980s, sending stocks lower on heavy volume.  Heavy volume declines without support are not a positive signal for stock market bulls.  Volume swellled as consumers were not confident in the coming months about the economy.  Some 20% of Americans are underemployed and some figures show 20% of Americans are unemployed.  Regardless of what survey’s are showing the market flashed a nasty day of distribution and with volume significantly higher than Monday’s level.  Bulls were on the run as sellers flooded the market with stock.

While we have a few stocks setting up in bases, today was a warning sign that we aren’t in a position to see a new bull uptrend.  The long-term view of the market remains mixed and now the short-term uptrend is up in the air.  Although, this is the first bout of distribution this market has seen in two weeks.  If you have strong stocks acting well no need to cut them if they aren’t giving you sell signals.  On-the-other-hand if you are seeing weakness in your holdings, it is time to cut your losses and move along.  This market can be unforgiving and it is best to protect your downside.  Stay with strong stocks, cut the weak

Stay disciplined.