Tricky Day*

[ByLoSellHi]

Quote from Mvic:

This is text book stuff. Keep the major index working while you unload your small caps to people who are fooled in to thinking the market is still strong. It is a risk aversion trade too, get out of the less liquid stuff in to the very liquid and easy to hedge big caps and indeicies. Finally, if margins are being squeezed and falling as is the CW the big caps are a better place to be than the small caps. We just saw this movie a month ago, not to mention countless times in the past.

I think this is true. I sense this is happening. Time will confirm it.

FormikaTrader - You did call it on the button today. Kudos.

 

[stonedinvestor]

Thurs:

Indeed today is tricky as well the 10 stocks I am following are all slightly in the red... transports moving out eye on warmer weather. There is a concerted effort to move away from small cap here. This is scary.

The instinct move would be to rotate into the semis but I'm just not sold on that- not from what the cell phone players are going to turn in...

In general today the indices have had 5 intraday brief pullbacks, each higher than the previous ones in a stairstep up channel pattern on the SPX ,rising wedge on the NDX... NDX dispalys broadening top or megaphone foramtion over the last 4 sessions...

And if I wasn't such a darn optimist... I'd say we lose the market after 3:00pm....