Signs of a Trend-Down Day

 | Jan 28, 2013 | 10:39 AM EST
  • Comment
  • Print Print
  • Print

The pattern of the market for weeks has been soft opens and strong closes. That is textbook bullish action. But this morning saw gap-and-fail action and, even worse, some downside momentum as profit taking picks up. It has been a while since a trend-down day, but the signs are there today and I've tightened up.

My message lately is to stick with the trend until there is weak price action. There is some today, and if we take Friday's lows at 1494, we have the makings of a rollover pattern. Breadth is running better than 2-to-1 negative on the NYSE and there are good hits to recent winners like 3D Systems (DDD), Stratasys (SSYS), Amazon (AMZN) and Google (GOOG).

The key to dealing with this action is to honor your stops. Take the hit and don't just sit there and hope it is a temporary hiccup. It might be and you can always rebuy, but the important thing is to protect profits and capital.

A few things on my radar this morning are Arris Group (ARRS), PBF Energy (PBF) and Opko Health (OPK), but I'm keeping it small and tight. The bears may finally have a small victory if we don't see a bounce in the next hour or two.

Columnist Conversations

View Chart »  View in New Window »
View Chart »  View in New Window »



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.