11-16-11 Market Close Comments
Today's market action dished up two sell signals. The S3 distribution count equal to Full Distribution Count minus one (=5) and an S5 close at least 0.2% below the 21-day ema on the NASDAQ. We are now at +3 Market Exposure Count. I sold UA today from the portolio to match the need to reduce exposure to 75% in. UA was a laggard position in my portfolio and I sold at +1% gain. The ebb and flow of the market forces me to clean up my portfolio. Eventually it will force me out of the market. Is this the time, I don't know but so far the ebb and flow has forced me to sell UA and DLTR and keep SWI and SBH at the higher end of my gains. If the market rights itself here these two positons will continue to rise.
We are struggling however at the 200-day moving average. I had said many times that this is the crossroads of the high road or the low road. The evidence is mounting the the low road may be in the cards.
Mike Scott
Cloverdale, CA
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