Other than Apple (AAPL), the bounce buyers are unable to generate much upside. The market is slowly sliding down and breadth has now slipped to 2,300 gainers to 3,000 decliners. We aren't seeing a rush for the exits like Friday, but there's very little buying interest. There doesn't seem to be much worry that this market is going to bounce back and run away.
In this sort of environment, I'm going respect the downtrend but try to find a few fast trades to put some money in the bank. I'm not worried about when the market will hit bottom. In fact, it makes me more optimistic the longer this goes. We need this type of action periodically to shake things up and create new opportunities. The process can be painful if you don't move out of the way, but ultimately we'll be better for it.
One group that is looking interesting today is precious metals. Although both SPDR Gold Shares (GLD) and iShares Silver Trust (SLV) still look problematic, I'm seeing a number of the miners, like First Majestic Silver (AG), Pan American Silver (PAAS), Coeur d'Alene Mines (CDE) and Yamana (AUY) forming productive patterns. I may venture into a couple later in the day if they hold up. I already added Primero Mining (PPP) to the Sharkfolio today. This small Canadian gold and silver miner operates primarily in Mexico. The company is expected to earn $0.57 this year and $0.76 per share next year and trades with a trailing price-to-earnings ratio of just 15. It gapped up early in the month on news and an upgrade and has been consolidating nicely. I believe the EPS will support a higher price at some point.
We are hitting day lows as I write. Stay cautious.
