Markets were once again hit hard Thursday and the Nasdaq in now on a 6 session losing streak, which it has not done since September. It did so in August as well and both instances the CLOSING prices marked short term lows. For the week it is lower now by 6% and is in correction territory lower by 10% from recent 52 week highs. Energy and materials, at the expense of sounding like a broken record, were the worst performers Thursday each slipping in the neighborhood 3%. The markets weakness has not been a surprise. Looking at the first 3 days of the week regarding new 52 week highs versus 52 week lows on the NYSE Monday was 4/135, Tuesday 17/88, and Wednesday 36/257. Late in the session Thursday tallies on the NYSE were 12 to 385. On the Nasdaq it was 7 to 251. Interestingly retail bucked the horrific tape as former best of breed players like PLCE CRI BKE GIII BURL and LE to name a few flourished. One name that did not get the group rally memo was FINL. It reported earnings Thursday and slipped close to 10% and to demonstrate how laggards will most often continue to be laggards, below is the chart we posted in our Thursday 10/15 Game Plan. Peer FOSL a perennial under performer lost ground today to the surprise of nobody. Homebuilders which have been weak were given another dose of bad news today with KBH falling 14% and is on the verge of becoming a single digit name. BZH is on that cusp as well and showing my age I remember when HOV was once a respected name in the group. It now trades under $2.
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