Tuesday, December 14, 2010

State of the Stock Market - 12/14/10 - "Worrisome Action in Individual Stocks"

I have a really bad headache right now so this post will be short.   Today seemed to be a session much like yesterday was - strong early, but quite weak late.   Overall, this may be just normal consolidation - however, I see some warning signs in individual stocks that has me pausing my "just a pullback" outlook at least a little bit.

I'm going to give you a list of stocks below.  Some are small-caps, but some are bigger-cap leaders.   These are stocks that had technical breakdowns today (through short-term moving averages).   Although the markets have not been hit hard yet, seeing this type of action in so many stocks (on what was a flat overall day) is something worth watching. 

TGA, RITT, URRE, SNCR, APKT, ASYS, SVN, MIPS, GPOR, ACTG, TZOO, OVTI, GMXR, TSLA, KNDI, HSFT, CRM, ATML, CSTR, RVBD, CTEL, EZCH, SIMG, FFIV

Based on this action, I would perhaps tighten my stops on any long positions and watch this market carefully.   Maybe it is nothing, but again, that action is not something to ignore, and a heavier volume breakdown in the overall market would confirm that this market needs a more significant pullback before moving higher.  Good luck Wednesday.

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