It was a mixed session for stocks as the SP500 rose a little and the Nasdaq finished lower by .3%. Volume was higher on both exchanges and appears (according to DG) to be above average on the Nasdaq. This is yet another distribution day and yet another day of volume coming in above average and, once again, being to the downside. While the losses were not huge and we did have a bullish final hour of trading but facts are facts and we have yet another poor showing when volume does come in higher. Still bears shouldn’t get too confident here as we still have some leading stocks doing excellent right now (especially SPRD) and we continue to get no follow-through to any selling whatsoever. So until I see a session followed by a weak session of us being down over 1% on even higher volume, I will continue to tread cautiously on the short side. I am only taking the trades because the charts tell me to take them as they are in high reward/low risk setups. The chances of them being correct as often as they would be in a clear downtrend are diminished as we have an overall listless tape where we have gone nowhere the past two months. In other words, cash is still king and if you have big enough accounts to mess around with a couple of trades then and only then should these be considered-new investors are better off in cash. I also have a few possible shorts to take that I don’t particularly like due to one reason or another: ODFL WMT CPNO ROST.
new short positions: ANF NX
ANF is rolling over and failing at the 50 day moving average, closing near the LOD, on heavy volume with BOP holding on to negative levels. Cut your final loss with a close above the 50 day moving average, if the stock does not move lower immediately.
NX is rolling over and breaking down at resistance right at the 50 and 200 day moving average death-cross, closing near the LOD, on above average volume with BOP moving to a lower negative level. Cut your final loss with a close above the 16.64 level, if the stock does not move lower immediately.
