Börsipäev 19. august
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Rev Shark:
Beneath the Surface, Small-Caps Go Hungry
8/19/2005 8:24 AM EDT"Victory is won not in miles but in inches. Win a little now, hold your ground, and later, win a little more."
-- Louis L'Amour
The market has been slowly drifting lower for a little more than two weeks now. If you just glance at the charts of the major indices it doesn't look like we have undergone that big of a correction but under the surface, and for many individual stocks, the story is a bit different. There is a lack of bids plaguing smaller and/or more thinly traded stocks, which has caused many to pull back substantial.
Yesterday was a good example of how the major indices are not reflecting how poor the overall action has been. Tobacco stocks rallied big on litigation news and that kept the DJIA in positive territory even though overall breadth was quite poor and there were few sectors with any strength.
However, the market faces a bigger problem than the rather stealthy nature of the current correction. We still seem to have a fairly high level of complacency and not a lot of strong emotions. There is little about the current state of sentiment to indicate that we are close to a turn back up. We may see some bounces especially as oil moves around but this is not a market that is unduly negative or disgusted.
Our primary job now is to hold our ground and not let our portfolios slip. We have to protect what we have and look for small advantages rather than home runs. If we are defensive now and keep our capital intact it will be much easier to move our accounts to new highs once the current malaise is over.
We have to be particularly careful right now about being too quick to embrace a bounce. We are undergoing a correction and aggressive traders are looking to sell and/or short strength. It is extremely easy to be fooled into thinking we are turning back up when all we are seeing is a relief, or oversold, bounce.
We have a slight firming in the market this morning despite weakness in Asia and a nearly $1 bounce in crude oil. The news flow is rather slow and you can bet that the ranks of traders is going to thin quickly and volume drop on a summer Friday.
Gary B. Smith:
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Sharki teises postis on lahe detail:
So why did Google (GOOG:Nasdaq) decide to offer 14.159265 million shares to the public in a secondary offering rather than an even 14 million? The first 8 digits of pi after the decimal place are 14159265. Coincidence? At least these guys know how to keep things interesting. -
Päeva lõpp kisub karmiks - Merck peab maksma suurt kahjutasu Vioxxi ohvrile, aktsia -5%. Farmaatsiasektor löögi all.
MRK Merck: Jury awards $229 mln in damages in Vioxx case; unanimous decision on all 3 key questions - CNBC (28.66 -1.75)
