Be Careful In This Unforgiving Market. The Tide Is Turning. -

Be Careful In This Unforgiving Market. The Tide Is Turning.

Dec 15, 2024Jeremy ParkinsonFinance, No picture0

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“It isn’t enough to believe in something, you have to have the stamina to meet obstacles and overcome them, to struggle.” – Golda Meir

Market Commentary:
Be careful in this unforgiving market. Know what you own, and why.

We see excellent set-ups in top-ranked Magnet stocks while several market leaders are breaking down.

The DOW 30, mid-cap, and small cap indexes are showing weakness while an increasingly narrow list of companies has kept the S&P 500 from breaking down.

It is dangerous to stay in overvalued stocks as their trend turns negative. “Algo-bots will sell with the same intensity they bought. They do not care about “the story.”

The Advance/decline line on the NYSE is showing weakness. The Nasdaq A/D has deteriorated and peaked in February. This is a serious warning.

This week’s 52-week new-high/new-low numbers showed the number of new lows increase significantly, sending off caution signs.

I am seeing potential “blowoffs” taking place that will become obvious as the tide goes out. As the calendar turns, look for heavy selling those names.

Economic data and market clues:
There are several economic data releases this week. None of them should suggest the Fed will alter their path of cutting ¼ point and then pausing. If you are still focusing on the Fed, you might find better things to do.This week has high-profile earnings releases in companies in the semiconductor sector. It will be interesting to see if this sector can hold up while “everyone’s favorite” (can you guess which one?) looks weak.If you have been waiting for a better entry point, it is fine to wait until we see a little more nervousness.For a longer and more in-depth look at the markets, please sign up for ProInvestors Insights newsletter. It includes contributions from me and a selected group of today’s most recognized investor services. Here is the link to sign up, it is 100% complimentary.Magnet® :My best idea has pulled back but is too small to mention here and has started to move. Coherent COHR Hims & Hers Health HIMS Technip FTI FTIFACTS:Generac GNRCCelestica CLSVistra VSTMore By This Author:The Music Has Become Louder And Faster – Not The Time To Chase
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