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NOTE: I will continue to post broad market commentary even after the launch of the 12631 service this Friday. If you would like to learn more about 12631, click on this link here (the service is only available to members of The PPT). Also, feel free to ask any questions.
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MARKET WRAP UP 11/09/10
Stocks continued to see bouts of profit-taking today in the wake of last week’s powerful breakout to fresh 52 week highs. With the S&P 500 finishing down 0.81% to 1213, the trading session was far from a bloodbath, but it was a party foul after the recent string of festivities that the bulls have enjoyed. Moreover, a fair amount of action junkies got caught with their hands in the momentum cookie jar on the long side. In particular, many of the precious metals and miners saw some nasty intraday reversals, after enjoying some impressive gains over the past few weeks. While one day does not a trend make, today’s action is enough reason to not initiate any fresh longs in the precious metals and their respective miners for a few days, at least until the dust settles.
Beyond the metals, the charts of the market leaders remain in good shape. As I have been saying for the past 100 points or so on the S&P, it is best to err on the side of the prevailing trend, despite how scary any one given day may appear. While we could easily see a few more days like today, that is precisely the reason why I did not proffer my weekly trading setups on Sunday. One can still be bullish within the context of an uptrend without always being heavily invested on the long side. Before you scroll down to my annotated daily charts of the major indices and sectors, take a look at some of these market leaders and decide for yourself if they are truly displaying any signs technically which would indicate a top, rather than a mere bullish continuation pattern.
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