Midday Comment
Today the AD line is skewed heavily to the downside at about 5:1 and volume is running about 10:1. Total volume does not seem to be high and that suggests two perspectives:
A - the low volume is evidence of little sell pressure and this "dip" should be bought
or
B - the low volume means that the selling has not climaxed and there is more to come.
I'll opt for b. The various indices are still extended and a good 1 - 2% above the 50 day MAs. There are other measures to consider but that would be the first target. Of greater concern is the continued deterioration in the bonds and utilities. I would prefer to see this stop so the market can stabilize. Overall there are many concerns but I think another day or two of this will produce better prices/bargains. Maybe when they throw in the towel on market leader AAPL we will have found a (temporary) bottom.
That is all for now...
A - the low volume is evidence of little sell pressure and this "dip" should be bought
or
B - the low volume means that the selling has not climaxed and there is more to come.
I'll opt for b. The various indices are still extended and a good 1 - 2% above the 50 day MAs. There are other measures to consider but that would be the first target. Of greater concern is the continued deterioration in the bonds and utilities. I would prefer to see this stop so the market can stabilize. Overall there are many concerns but I think another day or two of this will produce better prices/bargains. Maybe when they throw in the towel on market leader AAPL we will have found a (temporary) bottom.
That is all for now...
posted by David Geller at 1:43 PM
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