Leading to the downside again was the Russell 2000 index closing lower by 90 basis points. Small cap stocks have been bearing the brunt of selling as of late. While NASDAQ volume was higher it did not trigger a distribution day as the loss wasn’t great enough. Volume on the NYSE fell allowing the Dow and S&P to escape distribution. Social media stocks continue to push higher something we highlighted last night. In precious metals land gold and silver were up 2% and 3% respectively. Crude jumped along side the precious metals and is just below the century mark. In the end, even though we see selling as of late it doesn’t feel like institutions are coming in and dumping stock. The NASDAQ remains the winner here and what we see from the index there isn’t anything going to change our position of continuing to stay with this trend.
Social media stocks as well as BIDU and YHOO were big gainers on the day. TWTR continued on its upward trajectory as well as BIDU and YHOO. While this is positive on the whole we would like to see new breakouts hold like TWTR. FB broke out of a nice consolidation and its right side of its most current base looks really good. Social media stocks are poised to certainly continue to lead us higher. Knowing how much and when to exit are the two most important pieces of information you need to have.
It won’t be until Thursday until we receive big pieces of economic data. Today we saw wholesale inventories jump more than expected. Economic data appears to only matter when it has anything to do with Jobs. Of course, we can thank the Federal Reserve for pinpointing Jobs as their target.
This week certainly has been lackluster for the market in general. The S&P 500 appears to be in a holding pattern while small caps are the ones being sold. If the general market goes the way of the Russell we’ll certainly act accordingly. For now, we’ll remain with this uptrend until we get signals otherwise. Ride those winners!
