Every time I write my column there is always the possibility the market will change drastically between the time I file it and the time it goes up on the site. Today, when the stock market stalled at Dow down 140-150 I had that nagging feeling it would reverse higher and leave all sorts of hammer candles on the charts.
But it did not and now I am more confident in my bearishness. No, I will never call a day but I will call a trend. And that trend is down.
Transports broke. Tech broke. Small caps broke.
And the basic materials stock Alcoa crashed while consumer staples stock Lorillard (the former Carolina Group) rallied again. Does Anheuser Busch also count as a staples stock? It should as a bad stock market would make me want a few beers. Anyway, takeover time!
Get the picture? As I have been saying in Quick Takes Pro, the sector rotation is here. Tech was a flash in the pan.
We had a pretty good day Wednesday (Dow down 205) with plenty of shorts and two of three longs moving higher (we are in Lorillard, Potash Corp and General Mills, the latter of which went down only a tad). I won't show you my shorts (oh, the imagery!).
What do you want for nothing? Rubber Biscuit? (name that tune)
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