The indices did indeed bounce off of their 50-day moving averages on Friday, making hammers in the process. (imagine that!) I suspect that a lot of the last hour buying was shorts taking their profits & running. Based on the action of the indices I was expecting to come up with a long list of potential buys for Monday. But I saw a lot of broken stocks that I wouldn’t dare touch as longs. I’ll be watching those for short candidates if & when they bounce. So although the dip on the indices looks perfectly normal, there’s a good amount of weakness in individual stocks. I was able to come up with a decent list of buys though (lots of retailers… hmm…) but I’m not all that excited about them. So I think I’ll just stay in cash until after the Fed’s decision on interest rates Tuesday afternoon.
