Another Change in Character

 | Oct 01, 2012 | 2:08 PM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

snta

,

aapl

,

lnkd

,

swi

,

crus

Once again, we have evidence that the character of the market action is shifting to bearish. We had an almost euphoric response to the better-than-expected ISM report, but all the major indices except for the Dow have given back the entire gain and more. The DJIA is covering some poor action in the Nasdaq and the Russell 2000, both of which are now in the red.

We have had quite a few intraday reversals in the last seven or so trading days, and this is a new development. Typically, once the bulls are running, we have had trend days. Anyone who tried to fade the strength was crushed, but the bears are having much more success later.

What continues to be the most glaring problem with this market is how poorly some key stocks are acting. Key names such as Apple (AAPL), LinkedIn (LNKD), Cirrus Logic (CRUS) and SolarWinds (SWI) are weak, and there are very few pockets of momentum to be found. Homebuilders, which were recent leaders, have now broken down, and probably the best-looking sector right now is precious metals.

I'm very wary of the market and am staying very selective with any buys. One new purchase today is Synta Pharmaceuticals (SNTA), which is coming out of a very nice-looking base on substantial volume. I don't have much else on my radar. In fact, the vast majority of stocks I'm watching are well off their early highs and are steadily losing momentum.

Columnist Conversations

HLF
about 35+ comments below this one find my comment that HLF is both coiled and readying to move 10%, up or down...
Lang:
The action on Delta this year has been nothing less than bullish behavior. With a breakout on volume earlier ...
Polaris Industries is surging today following its Q2 earnings report. The recreational vehicle maker is...
What's Trading in the Option Market Notable One-day Option Position Increases UAM +899% FRC +448% EMAN ...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

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.