Friday, July 2, 2010

State of the Stock Market - 7/2/10

Not much going on today on Wall Street - it was a volatile day but nothing really changed from yesterday.  A lot of people were calling a bottom yesterday and today proved we are not yet at a bottom.   Perhaps we are forming one here but right now, cash remains a smart play as the market is down too much to short and I don't see enough extreme numbers and levels that makes me think we have a nice bounce coming soon.  I am still of the opinion that any bounce will be very shortable and I am actually hoping we get one.  Former leaders like BIDU and AMZN are starting to set up nice short-term setups and there are many other former leaders that also look like they will be potentially great shorts.   I showed some charts this morning that were still holding trendlines.   Unfortunately, I believe it is only a matter of time before those trendlines are broken.

I'll be back later this week and look at some of these charts as they are the ones to really pay attention to over the next few weeks.  Meanwhile, enjoy the three day weekend and I wish all my readers a happy Fourth of July!   Take care.

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