Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Things seemed more promising late last week as individual breakouts were still holding even as the market sold off on the jobs report. However the past two sessions we are seeing a lot of those breakouts once more fail. This is quite similar to the action a few weeks ago when there was a 4-5 day breakout, only to be rejected soundly. This time around most of the gains came in an overnight gap up, but a select group of stocks did continue to breakout and hold their gains – until this week. Many of them are failing today in a tape that is not horrid. Now once more we are left with “one offs” like Apple but a host of other names simply cannot persist in their gains. It is definitely a frustrating environment as this market is like Lucy the past 4 months – each time it sets the ball down and you think the environment improves, the ball is being snatched away.
While the S&P 500 itself has held the same bottom the past 3 days it is the action in individual equities which raises some concern. This morning the gap from the Friday’s job report did fill, but we saw the market immediately sell off all those gains. This 1346-1348 level has been the bottom the past 3 sessions but the large “European rescue” gap lies right beneath it.
Disclosure Notice
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
