The market, once again, had a very ugly final hour leading to a weak close. The more important piece of data comes on the volume side. Volume was above average on both the NYSE and Nasdaq and, once again, when volume is higher it is on a down day. Whatever attempt the market is trying to make at holding the July lows with some leading stocks doing well is being eroded away by the heavy volume selloffs that we see along the way. Every time it appears we have enough nice charts starting to build that could lead to some upside, we are immediately hit with selling on heavier volume. This pattern that is emerging is not good and it leads to a strong possibility that the market could crack wide open. I know that bull markets are born during pessimism and bad macro data but it appears the data is not ugly enough yet to have any real rally. When the market is ready to rally on higher volume, I will be ready to profit off of it. Until then, it appears we need to be ready for lower prices in the intermediate term. However, if we continue to chop around and go nowhere, will I be surprised? Of course not. I do have some stocks clearly breaking down but most of these are extended on the short term and a rally followed by another breakdown would give them safer/better setups. FLS BA SNDK SFL SBUX WAT and KT could all be considered as possible shorts.
new short positions: none
none
