Stocks fall in heavier trade ahead of the release of the FOMC Meeting Minutes

The market falls back on heavier trade as the NASDAQ adds another distribution day to its count.  Despite AAPL stock efforts the selling in ORCL stock and MSFT stock continue to weigh down the technology weighted index.  Distribution days now stand at five and warrant a cautionary approach to the market in the coming days.  Buyers were unable to lift the market after testing the morning low even during the final hour of trading.  Volume rose more than eleven percent on the NYSE while volume rose 4% on the NASDAQ.  Tuesday’s have been, as of late heavier trading days than Monday.  Today’s volume figures did not come as as surprise.  The uptrend remains in place, but with the elevated number of distribution days some caution is warranted.

Let’s not panic here, the market has overcome plenty of obstacles up to this point and for 5 distribution days for the NASDAQ is not too alarming.  Weighing down this index are the likes of GOOG stock, MSFT stock, and CSCO stock.  These technology giants are simply laggards weighing down an entire index.  It would not come as a surprise for the market to regain its footing and march towards multi-year highs again.  But, remember keep an eye on your backside and understand the ability to cut your losses and move towards cash. 

NFLX stock took a breathier today after running quite hard over the past few days.  The stock was bound to take a breathier and today’s action was quite constructive as the stock digested its gains.  AAPL stock added to its gains closing just below its 52 week high.  There isn’t much to say negatively about the price action of the stock at this point.  Until we see “sell signals” in the stock there is no reason to think this stock has seen the last of new highs.

The highlight of tomorrow’s economic reports will be the release of the Producers Price Index at 8:30am EST.  But, the spotlight will be that of the release of the minutes from the latest FOMC meeting.  Once again we’ll more than likely see the volitility asscociated with any release of FOMC information.  It is tough to expect anything less than a manic reaction to the release, but it is important where we end up.  Price and volume will dictate our direction and back to back distribution days would not be a good signal going forward.

Remember, to ignore your “gut” and follow the price and volume action of your stocks!