Online Stock Trading | Bernanke sends fear with policy talk, stocks slide on higher volume

Bernanke sends fear with policy talk, stocks slide on higher volume


Filed Under Market Commentary |

Stocks gained downside momentum as the trading day neared its end.  Interest rate and inflation FEARS continue to weigh on the minds of traders.  Alcoa’s excellent earnings report did not have any affect at the market’s open nor at any point throughout the day.  The big story on the day was Ben Bernanke and how he approaches monetary policy, terribly exciting.  However, was today’s action just helping build the wall of worry?

If we take a look at leading stocks such as GOOG, AAPL, or even the IBD 100 index we can see today’s action did look like a full scale breakdown of the market.  Stocks in my portfolio:  ARGN & RRST only had small pullbacks on lighter volume.  A welcome sight when the overall market is down on heavy trade.  I would be worried if the IBD 100 and other leading stocks breakdown at a more rapid pace than the overall market. 

Here are some market internals:

We are not close to being at a euphoric state to where we’d experience a crash or even a correction deeper than 10%.  On top of the growing Wall of Worry leading stocks are holding up.  Normally, we’d see a breakdown in leaders.  Although today was a distribution day, we are seeing weak stocks getting dumped and leaders continuing to be leaders.  We are still poised to continue higher.

No economic news to be released tomorrow, look for crude inventories to excite the CNBC crowd. 

Keep those losses small.

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