Don't Spit in the Wind
OK, I know that normally I try to tell you each day which stocks are moving but today I'm not going to do that. I don't advise anyone to buy into a market like this for several reasons:
- We are entering earnings season -- some stocks will beat expectations some won't and no one knows which is which
- Washington is a mess with no end in sight and that uncertainty is depressing the markets
- When things are depressing the stock market stocks that are now going up are not the ones that will go up when sentiment reverses itselfLet's be objective and see why you should sit on the sidelines. If I look at the S&P 500 index like a stock its hourly trading looks like this:
Barchart technical indicators:
60% short term sell signal
Trend Spotter short term sell signal
Below its 20, 50 and 100 day moving averages
4.50% off its recent high
Relative Strength Index 38.19%
I hope you wouldn't buy into a stock that was trading like this!
At the present time 57.70% of all stocks are trading below their 50 day moving averages. This morning only 96 stocks hit new monthly highs verses 1092 stocks hit new lows.
This is not a market to buy into. I advise you to trim big loses, and accumulate some cash to buy near the bottom.