Market Commentary: Markets Close In The Red, Further Weakness Is Seen

Market Commentary: Markets Close In The Red, Further Weakness Is Seen



The stock market as measured by the S&P has dropped around 6.1% in the past few weeks, and this exceeds the 5.5% decline that we saw in February.  Negative retail sales is one area that was blamed for today's loss since we are primarily a consumer driven economy.  Of course, November and December should be strong due to holiday sales.  So, I am buying strong stocks now like Intel and Facebook, but I will probably reduce them near the end of December because volatility is the new paradigm which we have not seen to this extent since August of 2011.



In his article, Gary shows the NYA index breaking its lower Bollinger bands along with institutional investors who are selling up trends.  He believes we will experience more selling.   On the positive side, though, the NYSE McClellan Oscillator ($NYMO) has gone from more than -60 to -38 as of today's close.  So, we are getting a bounce off the bottom.  Some traders reportedly called the bottom today also when the Dow was down more than 300 points.  I am just trying to hold on another two months so that I can reduce my portfolio when we are back near the year's high point.