Online Stock Trading | 3rd Distribution Day Strikes the S&P 500

3rd Distribution Day Strikes the S&P 500


Filed Under Market Commentary |

Selling swept across Wall Street like the Santa Ana winds across Southern California. Chalking up its 3rd distribution day in the past 4 weeks the S&P 500 has tied the Nasdaq. Both indicies have 3 distribution days, one just needs 5 to signal a correction. The past few trading sessions have left many shaking their heads feeling lost. Are you lost?

The past few days have been mindboggling, certainly looking like churning. Tomorrow’s action should be fun to watch as MSFT was received well after hours. This should help propel the Nasdaq higher at tomorrow’s open.

My apologies for not taking a look at some of my weekly stocks to watch…periodically tomorrow I will be going updating some notes on them.

Let me know how you are feeling about this market. Leave a comment…

I am still in a holding pattern, not much to buy but I am not running for safety yet.

Happy Trading!!!
Market Speculator

marketspeculator@gmail.com

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Comments

2 Responses to “3rd Distribution Day Strikes the S&P 500”

  1. Gio on January 26th, 2007 2:32 am

    How do I feel? Quite lost. The market has been up and down, but I guess it’s to be expected since we’re near the top and/or earnings season is upon us. Hence, it’s so tough to “call the market” in the short term, and I’d rather not play that game. For now I’m rotating into telecom and medical equipment stocks since they have doing well YTD.

    I have 0 shares in Mr. Softy, but I will think their underpromise-overdeliver quarter will help tech a little (in contrast to the AMD debacle). I’ve been reading a little about Vista, and the word is that it’s a great product, but don’t expect it to be a ground-breaking must-have like Windows 95 was. Some critics say if you have XP, then an upgrade to Vista won’t be necessary. I think Vista is an important step to Gates accomplishing his ambition to turn your house into a giant computer center, so maybe MSFT is a bit ahead of it’s time. Anyway, MSFT is on the right track… xBox is great, Zune is better than expected, and now Vista is finally ready to release.

    BTW, can you explain why the housing stocks are not melting down? Based on their fundamentals, THEY SHOULD BE! Market is wack.

  2. Market Speculator on January 26th, 2007 8:36 am

    Gio…

    Housing stocks have already suffered their decline. Take a look at anyone of the homebuilders. Notice HOV, peaked in ‘05 at 73.40 on 7/20/05. When did fundamentals drop? You must use charts to see the actual breakdown of the stock…and the stock will breakdown much before the fundamentals do.

    MktSpec

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