Semiconductor stocks lead the market lower in mixed trade
Better than expected crude inventories kept crude oil at bay, but did little to help out stock prices. Lower on the day was the Philadelphia Semiconductor Index (SOX index) fell more than three percent sending the index below its 50dma. The SOX index has been on a tremendous run since the September 1st follow-through day. Volume was mixed where the NYSE saw its volume drop by 11%, but institutions were out selling stock in NASDAQ as its volume rose almost 11%. On the anniversary of the two year bull market it appears the market has become quite sluggish. We are in correction mode, safety is a prudent place to be.
Market leaders continue to struggle and AAPL stock is one struggling. While we aren’t saying the stock is DONE forever, but the stock is succombing to selling pressure. A move back to its 200dma or lower is not out of the question. Just because you like the “story” doesn’t guarantee the stock will continue to push higher. Without a healthy market for long positions AAPL stock will continue to struggle here.
The NASDAQ continues to flirt with its 50 day moving average and we’ll need to see it move in either direction. It certainly “feels” like this market is topping for the time being and we will likely see the market move lower. However, we’ll need to have price dictate our decisions rather than our emotions. Gut feel has no place in stock market trading, but for most gut feel and emotion play a dominant role.
Jobless claims will be on the front market headlines, but it shouldn’t come as a surprise. The growth of financial media has made mountain out of mole hills when it comes to economic data. Perhaps the allure of gambling plays a role in folks gaming for a particular number, but it has no real use when trying to become a successful trader. Discipline is of the utmost importance and allow price and volume to dictate your decision making will drive you down the path of becoming a successful trader. Of course, cutting your losses is your number “to-do.”
