::: Today’s Market Action :::
Despite more bullish inflation data indicating a soft landing for the economy, the market is selling off in heavy volume today making it likely we’ll get a day of distribution. The market fell off a cliff with near simultaneous news of a Yahoo profit warning and news of a coup attempt out of Thailand. With lots of room to run to the downside before first levels of support are hit, today’s action probably sets up further selling in the coming days. As I’ve said on numerous ocassions over the past two weeks, be careful up here.
(Note: volume averages are based on the average over the past 50 days)
Data as of 2:45PMEST
Nasdaq: down 1.22% today with volume currently tracking 9% ABOVE average
Nasdaq ETF (QQQQ): down 1.02%, volume 35% ABOVE the average
Dow: down .47%, volume 28% BELOW average
Dow ETF (DIA): down .45%, volume 26% ABOVE the average
S&P ETF (SPY): down .59%, volume 15% ABOVE the average
Russell Small Cap ETF (IWM): down 1.43%, volume 4% ABOVE the average
::: SelflInvestors Leading Stocks :::
Leading stocks that make up the SelfInvestors Breakout Tracker database are getting hit quite hard today in terms of price movement but there isn’t a ton of volume behind the move.
Summary:
* Decliners Leading Advancers 298 to 54.
* Advancers are up 1.22% today, with good volume … 19% ABOVE average
* Decliners are down 2.06% but volume is right at the average
* The total SI Leading Stocks Index is down 1.57% today with volume a bit above average at 3% ABOVe
* Where’s the Money Flowing *
Many websites just provide leading industries based on price performance alone.. without the volume, this can be misleading. The only way that I know of to guage industry/sector strength WITH volume levels is through the analysis of ETF’s. A couple years ago this was not possible, but as more traders/investors use ETF’s they become a much better tool for guaging the health of the market and seeing where the money is flowing (or not flowing). Using the proprietary SelfInvestors Demand Indicator score which measures price and volume movements, I’m able to quickly see which sectors/industries are seeing the greatest inflows of cash.
* Leading Sectors/Industries – Consumer Discretionary, Consumer Services, Pharma, Telecom, Retail (consumer related stocks continue to do very well.. retail staging surprising run)
* Lagging Sectors/Industries – Energy, Energy, Energy.. and Energy AND Gold (still no change here)
* Today, Treasuries and Realty are moving
* Internet getting hit very hard today, followed by Oil Services, Semis, Gold and Energy
** Stocks **
This area still under development.