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S&P Fades Throughout Day


It was an interesting day after all.

As I wrote last night, the market rally on the news of Bin Laden’s death might fade similar to the action after Sadam’s capture. As you can see on the chart above, we lifted nicely at the open but slowly faded as the day went on, ending with a slight 0.18% loss.

As I scan my screen, the metals producers were the big losers today (Goldcorp lost 5.5%, Junior Gold Miners index lost 4.2%, Avalon lost 3.9%), along with some high P/E stocks (like Whole Foods down 4.9% and Valeant Pharmaceuticals down 5.6%, both in spite of either anticipated earnings surprises). The winners include most other pharma/biotech stocks, large industrials, and oddly some stuff that hasn’t been working lately – tech and small cap banks.

I’m getting increasingly worried about the market.


In spite of today’s weakness, the market is at the top of its current trend and the relative strength is bordering on being over-bought. We’ve been using the rising trend to raise cash in portfolios and are in the 6% to 8% range in most accounts. If the trend continues up, we’ll get to the 10% level – if we pull back to the bottom of the channel, we’ll put some of it back in the market.

Never a dull moment, plus I’ve been waiting a long time to use the following video from one of my favorite bands.

Click Here to Watch today\'s video on You Tube