They say its no how you start but how you finish. Putting that theory to work the markets are not telling a sweet good night lullaby. The leading Nasdaq today lost 2.15% on the largest daily volume of the year. It went out on its lows for the day and week, a bearish characteristic. For the year the Nasdaq is now down 1.1%, and if the saying, “as January goes, so goes the year” holds up it could confound the bulls. The S&P 500 with its heavy energy exposure is lower by more than 3% so far in 2014. It lost 2.6% this week and sliced right through its 50 day SMA and the round, psychological 1800 number today. Let us keep in mind that the benchmarks are still just off all time or decade highs. The S&P 500 is just 3% off its all time high. The index has not recorded a 10% correction since the summer of 2011. Talking about the big round numbers, the transports via the IYT fell 4% Friday, but found precise 50 day support at the round 130 handle. We will see how long that holds. KSU a former best of breed name fell 15% today and again the round number of par came into play as it was stopped there at the close. Of course CSX was hit last Thursday to the tune of 7% after missing, and the train wreck continued this week with another 4% being clipped off the share price. We know UPS in the group lowered guidance last Friday, and word may have already been out as it finished Friday in the midst of a 4 week losing streak. Samsung posted its first quarterly decline in 2 years that came as a surprise to many. So I am sticking just to the stocks (forget China and Argentina) and there are a lot of negatives going on. I heard it stressed many times today how todays retreat was orderly and how that was a good thing. I beg to differ and think that means a “panic” selling moment is one that has not transpired yet, and one that can be bought into when it does occur.
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