Nervous Traders Sell the News

 | Aug 25, 2011 | 10:40 AM EDT  | Comments
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WETF

The news flow is making for some very volatile early action. We have the Steve Jobs resignation as CEO of Apple (AAPL), Warren Buffett's buy of Bank of America (BAC) and major pressure on the German markets. With nervousness growing over what Fed Chairman Ben Bernanke will have to say tomorrow, the Buffett-induced spike to start the day was sold aggressively.

The big problem right now is that the technical conditions are supportive of some selling. We had a decent bounce over the last two days, due in large part to hope that Bernanke will give the bulls some ammunition, but now a lot of folks are wondering if there really is anything the Fed can do, other than give us some happy talk.

I'm getting a bit tired of pointing out that there are virtually no good long charts right now, and nothing has changed this morning. The one group that I do find interesting here is gold mining. We are seeing a pretty classic pullback from the highs, and normally when a group has that much momentum, there is some pretty solid dip-buying support. I added back some Richmond Mines (RIC), which is my favorite gold miner, and I will be watching for other opportunities to develop

Another stock I continue to like is WisdomTree Investments (WETF), which I mentioned the other day. It is one of the few good charts that I see, and it has an Outperform recommendation and a target price of $9.75 today from Piper. I put some in the Sharkfolio.

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