We have gone from overbought to oversold. But the market doesn’t read charts.
Wal-Mart was the crusher in this morning’s news. Last year’s darling reported ugly revenues so the stock is down 10% in pre-market. 10%!
You cannot ignore the horrendous earnings from retailers. There was a photo in the Journal of DKNY store in NYC. The window has “90% OFF” written on it.
I am reluctant to let go of my earlier theory of hedge fund buying propping this market. Try as I may, however, it appears for now that we may be back to last year’s shoot and run tactics. Buy and hold is a fool’s errand as I am confirming out this week.. But I certainly didn’t think a week was classified as long-term.
Gold and oil are rebounding and that may salve my account.
Perhaps Obama’s speech today will provide some good news but I am not waiting. I have tightened my tops and expect some positions to be sold today. Inverse ETFs as discussed yesterday could be considered.
