Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Why It's Now Time to Be Bearish

By

The top nine reasons for downside bias in today's stock market.

PrintPRINT
Editor's Note: The following was posted in real time on our premium Buzz & Banter (click for a free trial).

The Wedge has now resolved to the downside! It made a ton of sense as I made my list of the top reasons why we were leaning to the downside.

Some reasons for my downside bias:

  • Five days of market distribution having IBD putting us in a market correction earlier this week.

  • Copper under pressure -- usually a leading indicator.

  • Semis under their 50-day moving average -- this is the heartbeat of tech.

  • High beta tech lost momentum -- Google (GOOG), Baidu (BIDU), Amazon (AMZN), Netflix (NFLX), etc.

  • Oil Services HOLDRs (OIH) seems to be breaking the upper range -- if it can get and stay below 158.

  • The hot optical group is in the penalty box -- Finisar (FNSR), JDS Uniphase (JDSU), etc.

  • The agricultural group rolling over and technically breaking down.

  • Oil still holds over 100.

  • Europe making headlines again about its problems. These have been ignored with the sexier headlines out of Libya

Below is a close-up of the wedge in SPX and macro snapshot on the next areas to watch. I hope you've trimmed down positions and came in net short. It wasn't the exact set up that we would have liked. But those prepared are not in harm's way today and we can "embrace" this volatility for opportunity.



No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT

Busy? Subscribe to our free newsletter!

Submit
 

WHAT'S POPULAR IN THE VILLE