Jerry Samet
11-20-2013, 06:47 PM
The market continued it’s pattern this week of opening higher and then spending the rest of the day selling off. The major averages set their intraday highs in the first hour and sold off into the close to finish near the lows of the day. The NYA lead the way down with a loss of .39% and the COMPQ lost .26%. Volume was mixed, down slightly on the New York and a bit higher on the Nasd. This produced a distribution day on the Nasd averages. Leading stocks had a tough session as well with the leaders index falling 1.32% on lower but above average volume. The index has now closed below it’s 9dma. Last Friday both the major averages and the leaders index were setting new highs. We now have had three negative sessions in a row with both the overall market and leading stocks showing weakness. It has not paid to call corrections this year as none have panned out, but it is very difficult to make money right now and the leadership, ranging from TSLA and LNKD weeks ago to DDD just this week are breaking badly. This time of year often produces some rallies but risk levels are high and I’m not sure it is worth the effort. Jerry