Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
After a morning rally, markets have given back all their gains in a poor showing for the bulls. Yesterday’s late afternoon lows pre-Hilsenrath story were S&P 1329s and we are currently seeing prints in the 1331s. A break of yesterday’s lows will be bringing in some technical traders and robots. Whatever the case the action is not good as the “good spirits” from any earning reports quickly was sold. It looks like that buying late in the day was mostly short sellers covering.
All the high beta technology stocks are obviously getting hit as the NASDAQ is performing worse than the other indexes. If we continue this 5-7 day rally, rebound, rally, rebound trend we are in day 4 of the selling. A simplistic view as it seems improbable such a simple pattern continues indefinitely.
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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
