I have an engagement tonight so today's post will be short - no charts. We saw a choppy session today on Wall Street, and one where the Nasdaq drastically underperformed the rest of the indices. Volume was lower.
I ended my post yesterday with the following sentence - "I have a feeling we could see some very high volatility this week (as we already have the past two days) so do be careful out there." I didn't realize it would be so true today. I was bullish after yesterday's performance (who wouldn't be) but as I look at my scans today, I am very much neutral to slightly bearish. Yes, that's a quick turnaround, but it is what it is.
I see a lot of bearish moves today in leading stocks. My long watchlist (not buy list, just stocks that I keep my eye on for one reason or the other) was at 246 today. As of 3:53, 75 of those 246 had down moves of 3% or more today. Most came on heavier volume. When I see stocks like CRM (which luckily I was stopped out of at $109.40 today) completely fall apart today, I begin to get worried. The damage I see on individual stocks is much worse that the overall market numbers will make it seem.
Here's the list to check out - MELI, ACOM, INFA, EBIX, NTAP, CTXS, RHT, FIRE, APKT, OPNT, ISLN, VMW, RVBD, VMW, FFIX, RAX. There are more but looking at these should give an idea of what I am talking about. Today looks like major distribution in these names (the real leaders of this past rally) and that is not good.
I talked about gold yesterday and its parabolic move - it gapped up slightly today again as the dollar fell further. One of these days (perhaps very soon) this move will reverse and it will not be pretty over a short-term time period. If it happens, I think the market will get hit as well.
I am still long IDSA but as of now, that's it. With what I see going on today, I am most likely going to sit back and do nothing the next few days. I am a LOT more bearish than I was yesterday and I would be very careful here. Perhaps we will just see a rotation occur right now out of tech and into commodities, but it's not like commodities aren't extended - they very much are. I hope I am wrong, but I will not be surprised to see some major selling come into this market very soon. We'll see the rest of this week. Take care and good luck Thursday - be careful.