Wednesday, August 15, 2007

Weak

There shall in that time be rumors of things going astray, erm, and there shall be a great confusion as to where things really are, and nobody will really know where lieth...those little things with the sort of raffia-work base...that...has an attachment.

---- Boring Prophet, Life of Brian


I'm not much for financial prophecies -- especially ominous ones -- but the market continues to weaken in ways that suggest more weakness. The NASDAQ ended a 2-hour afternoon selloff with a close below its 200-day. Even worse, volume surged 15%. The internals are a rogue's gallery, and the IBD100 tumbled 3.6%. Just 8 of 100 IBD100 stocks closed higher.

On the other hand, a good friend of mine is in sales, and I asked him once how he kept going during long stretches of rejection. He replied, "I remind myself that each 'no' is just one step closer to a 'yes'."

A wide array of indicators are growing more and more oversold, as the market steps closer to a bounce/bottom/zero. Unfortunately, price can easily keep falling long into oversold conditions, but we'll see.

I'm on the road so this is short. I'll try and touch base again tomorrow.

best

dk


It's unfortunate to see that the Cyclicals closed below their 200-day on Wednesday.

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2 comments:

Anonymous said...

Hope "on the road" is a vacation. You were right on re last Thurs. I'll be looking for your word here if you're not at the village.

Jaye

I.L. said...

Where are you, dk?
I realized I have gotten addicted to your daily missive as I'm sure many others.
Hope to read your work soon here or elsewhere.