8-28-12 Comment

Yesterday was a stall day on the NASDAQ. Stalling occurs when buying meets heavier selling. The NASDAQ went up a small amount on volume higher than the day before: classic stalling.

This brings the distribution count to +3. Stalling seldom happens in a healthy market so this is a caution sign. I consider the NASDAQ 100 right now the leading index. It has stalled at a possible double top. For the pessimistic minded we are at a perfect setup for dissapointment out of Jackson Hole Wyoming this weekend. Of course it is a setup for the optomistic outcome also. I try to not out think the market. I keep my eyes on the leaders and the leading index. I hold KORS, FRAN, TFM, ELLI, NSM and EQM. I am about 90% invested. I also have a trial short in LULU, something I will likely have to cover as it isn't working so far... This market is a little too thinly traded to work the short side with any conviction but stalled markets are one of the places to try these things.