The market is under pressure this morning due to the missile launch by North Korea. Fact is; we’ve been saying in these pages for the last couple of weeks (here and here) that there’s been a slight change in character in the market, the North Korean missile is just something we can blame.
Unlike previous times when the market sold off we did not see a V-bottom nor did we see an uptick in stocks rebounding hard after the sell-off this time around. As you can see in the chart below, anytime we had a spike in 1-month new lows we typically had a day with a lot of stocks going up 4% or more immediately after, that was not the case this time around. Overall, breadth has been slow to rebound, unlike previous times.
The indices are below their 20-day moving averages and set-ups are scarce, act accordingly.
$DVAX $GRUB $NEWA $PLUG are the stocks of interest on the long side for me today if and only if they can get through yesterday’s high.
STOCK OF THE WEEK RECAP
Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at email@example.com or 646-480-7463.
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