Selling does not make a market bottom, buying does!
Author: Ivanhoff
Industry Relative Strength
| Industry group | 1 month performance |
| Building – Residential | 19.70% |
| Finance – Consumer loans | 12.50% |
| Retail – Apparel Shoes | 12.30% |
| Banks – major regional | 11.30% |
| Banks – southwest | 11.20% |
| Oil – US exploration | -23.30% |
| Oil Field Machinery EQ | -26.60% |
| Machinery – Electrical | -27.20% |
| Steel – Producers | -29.70% |
| Coal | -65.57% |
| Money continues to slowly flow out of stocks. The one month | |
| RS rank is occupied by members of the retail and financial | |
| sectors. For first week since middle of July, they experienced | |
| stronger selling pressure. | |
| The usual suspects at the bottom (commodity related industries) | |
| finished the week lower, despite showing some resilience as the | |
| weekend approached. The small bounce in Thursday and Friday | |
| is most likely due to short covering than a consequence of | |
| renewed funds’ long interest. | |
| Market’s weakness is spreading slowly in all directions and there | |
| are fewer places to hide. If you are a retail investor, flexibility is | |
| your biggest weapon. There are no good or bad stocks, only | |
| good or bad trades. | |
Being Objective
The market reaction to news is more important than news itself.
You trade what you see, not what you think should happen.