Obviously, today was a tough morning. The market uptrend is currently under pressure, with five distribution days on the S&P500 and four on the Nasdaq.

 

Due to the market pressure, we are adjusting our risk by decreasing our exposure. Significantly, the true leaders are revealing themselves today with their big upside reversals off the lows; some of have even gone green on the day (as of this post).  If, the market ultimately comes out of this and has a good earnings season, then many of these leading stocks are the ones that should be focused on when it’s time to increase exposure again. Most investors tend to tune out during periods of market weakness, but, in reality, these are the best times to find the future winners.

 

We will have an in-depth discussion at the next Master the Market webinar on 7/15/2014.

Best returns,

 

Scott O’Neil

President

MarketSmith Incorporated

 

Follow Scott O'Neil at Twitter.com/WScottOneil