Last week the following points were addressed.
Semi’s and previously underperforming Technology – Nearing some bottom
Gold: holding above recent trading range
Financial stocks at further risk. Specifically Brokers.
Market waiting for bad news or looking for excuse to sell.
Few of these points materialized especially the broad market theme of looking for excuses to sell. As far as Semi’s are concerned I would begin to distinguish quality names and accumulate “value” names on the way down. Regarding Gold – well not a favorite place and would stay neutral. At the same, time extended momentum names face further downside risk.
Financials continues to see further downside. Although, Let me add that it is hard to find names to short for a sustainable period. Once again this week will highlight two shorts FED and ICE. Please note: ICE details posted this mid-week.
Looking Ahead
Use panic to your advantage – This correction or downside move is going to create buying opportunity. The “Gloom and Doom” story will be in fashion but life goes on.
Panic time buying – I favor tech, non-biotech healthcare and Consumer related themes
Europe and select
Charts illustrate the power of facts that are stated in the market.
