Your pop up blocker may be preventing the MarketSmith tool from opening.
Learn how to resolve this issue.
European fears helped send stocks lower as Spain and Italy fears
continue to gain traction. The big deal with Spain and Italy is simply
the size of their economies and it is the size striking fear in the
market. Sellers dominated the entire session as volume sky rocketed in
panic like fashion. VIX jumped to its highest level since early March.
Not a good day for those who were long the market as there isn’t much
to point to as a positive. The lone positive was in after-hours as
Alcoa posts better than expected earnings and the stock jumping more
than 5%. A very bearish day for the markets as the Big Wave Trading
model goes into Sell Mode.
The difficulty here will be whether or not the market will continue
to sell off here. If it does look out below as it could get really
nasty. However, there is enough evidence we’ll see a bounce we can
short into. As of today’s close the McClellan Oscillator was sitting at
-377 a very extreme level. We can certainly see the market get even
more oversold, but with today’s reading it is hard to believe we’ll fall
Leading stocks didn’t have much support today either, but given the
size of the selling no one escaped. There are many reasons for the
market to sell-off, but we know it is better to act rather than trying
to figure out the reasoning. Sure, Europe is a great reason for the
sell-off and Spain and/or Italy’s failure would bring on some pain.
But, this market has gone straight up on the back of AAPL, CMG, and
PCLN. A correction here is not out of the question it is unfortunate
volume kicked into hyper gear today.
Earnings season was kicked off by Alcoa during the after-hours
session. The stock posted better than expected earnings and the market
responded by sending the stock higher by 5%. Many will view Alcoa as
the unofficial barometer for the first quarter earnings season. It will
be fun to watch the entire earnings season unfold.
Cut your losses short.
© 2013 MarketSmith, Incorporated. All Rights Reserved. MarketSmith® is a registered trademark of MarketSmith, Incorporated. All data provided by William O'Neil + Co. Incorporated unless otherwise noted.