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The market continues to move lower in an orderly march down, as more and more traders are becoming disgusted with this tape. The negative headlines are making their usual multiple appearances throughout the day, be it Italy defaulting on olive oil exports, or the Senate waiting until the last possible second to vote on the debt ceiling.
Despite that seemingly bearish backdrop, the S&P 500 has pulled in to that familiar area of support from March and June. On a daily timeframe, we are oversold by many accounts, as sentiment has quickly turned highly cautious again. Moreover, we have the same arguments from those looking for a fresh bear market that we saw back in March and June.
One glaring divergence that I see is how well the Nasdaq Composite is holding up. Note that it barely has given back half of its gains off of the June lows. Given how many high growth names are in the Nazzy, I find this divergence (on top of how well the copper names are acting) to be bullish, when compared to the S&P 500 giving back all of those gains. I recognize all of the bearish arguments to the contrary, but it is never easy to buy into a sell-off, at least when you should be buying. There are no free lunches in the market, because when you go against the grain you will be met with relentless opposition each step of the way.
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would love to take those 2 shares of $TNA
I’ll be damned if that pic isn’t of my old hood.. Huntington Beach Pier…
The one w. the big Ferrris Wheel, a la John Belushi in 1941?
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