A mixed bag right now for the markets and it was the same for economic news this morning. A poor report from durable goods, but a better than expected rise in Consumer Confidence. A few leaders lagged the market today and with the end of the month arrive tomorrow we’d expect shuffling amongst the market leaders to occur. Small cap stocks lagged on the day as the Russell (IWM) continues to head sideways, but we’d like to see it breaking out here soon. Continued underperformance is a negative for the market overall. Volume was mixed rising on the NASDAQ, but falling on the NYSE. The NASDAQ continues to defy bears; stick to your plan.
Now I am seeing brokers sending emails sent to me asking if you should sell or hold. Everyone is very sensitive to the market taking a dive and I don’t see anyone saying the market can’t go down. Usually at market tops you NEVER see a broker or CNBC ask if the market has topped. They spew so much bullish nonsense is when a major market top is near. Small corrections or natural reactions to uptrends are bound to happen and can get as deep as 10%. We’ll keep an eye on our stocks and distribution days to give us a clue.
Silver took center stage today as SLV pushed higher by 4% followed by GLD ending higher more than 1%. It certainly appears the printing press will continue to pump liquidity in the markets. Unfortunately, it is not a good sign for inflation and for the American people. On a solid note natural gas continues to find itself hitting new lows and it was quite close today. GLD and SLV are a big signal inflation is near and will not go away.
Stay disciplined here by cutting losses and just as important laggards.
