Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
The market is acting much more tricky this week – even more so than the previous two. After the FOMC meetings we saw the quick selloff, but stocks rallied sharply in the closing half hour to pare losses to very modest levels. That looked bullish. Of course, that was met with a big gap down yesterday morning. Then yesterday the major indexes bounced off their 20 day moving averages (and the Russell 2000 off its 50 day) only to see selling in the futures market, and negative opens today.
While trying to fight back as I type, end of day strength is not leading to momentum the following day – another not so good sign. A lot of yellow flags being raised.
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Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog
