A large gap to the downside and lower lows after the first hour set the stage for a sour day today. We are now sitting back under the 50 day moving average and it looks like lower prices are yet to come. Cash remains king at this time.
Keep an eye on stocks holding up in this tough market. I’ve discussed this many times in the past and blogged about it as well. Some stocks I am keeping a very close eye on include names like Netflix (NFLX), CF Industries (CF), and Salesforce.com (CRM). Don’t rule these stocks out and don’t be afraid to try a small position with a tight stop. If the market turns you could have a big winner.
Stay frosty out there.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Up | Up | Up |
| Intermediate | (-) Down | (-) Down | (-) Down |
| Short-term | Down | Down | Down |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I’m simply using the indices’ relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
