Online Stock Trading | Markets slump, Cash is king in this environment.

Markets slump, Cash is king in this environment.


Filed Under Market Commentary |

Small and Mid-Cap stocks continue to drag down the entire market. There is no rhyme nor reason for selling, it just comes. Since the second week in May selling has dominated this market. There have been a few attempts by the market to get back into rally mode but ultimately failing.

I sound like a broken record, CASH IS KING.

Stocks that were looking to breakout like BIDU or PMTI have all failed. This most definitely isn’t a good sign. Even watch lists are tough to maintain at the moment.

As we turn the corner into August, this month is notoriously horrible for the market. Seasonally one of the worse times to be long, only September is worse. Having a sound game plan of being strictly in CASH and watching for confirmed rallies is what we should be doing.

Nasdaq’s distribution day all but killed any valid rally attempt here. Look for the Nasdaq, Small, and Mid-Cap stocks to continue to weight on the market in general.

Happy Trading.
MktSpec

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