Today can be called nothing other than nasty as most of the indexes made round trips back to either six-year or eleven-year lows, following a nasty selloff that came on very heavy volume. Volume picked up on every exchange as finally some signs of panic selling hit the market.
This selling took the markets off around 5% to 6% and a lot of stocks were just walloped. Now while I have continued to talk about the nasty downtrend this market is in and how well my shorts have been doing: top short holdings and total returns: IPHS 44% POT 65% GGB 72% SBAC 66% CYT 69% MOS 74% CETV 89% CPRT 28% AZO 24% RDK 17% AMX 49% PLCE 38% CAJ 34% SPG 52% CEO 51% AAPL 50% ENB 24% K 18% ARB 67% AMSG 20% SPW 77% RIMM 58% LLL 37% CEDC 65% APD 55% OKE 46% SDA 80% TITN 59% PAA 28%). I don’t believe I have seen the market in such a bleak condition in a long time and think I need to tell you about the lack of bullish items out there.
To start it all off only 3% of stocks in the market are above the 200 day moving average and to make it worse only 4% of those stocks are above their 50 day moving averages. I personally have never seen numbers this low on both indexes. If I have, I can not remember it. To top that off, the amount of stocks hitting a new 52-week high compared to stocks hitting a new 52-week low really showed some extreme readings today. Now while we have had 4,700 new lows at one point just last month which signaled over half the market making new lows, there were still more than just one stock hitting new highs. Today, however, there was only one stock that hit a new high and there were 2,300+ stocks hitting new 52-week lows. This is just an incredible number.
What makes this selloff worse for bulls is also the fact that there is almost nothing setting up out there as possible future longs. Until yesterday and today, there was at least two handfuls left of stocks that looked like they could be longs in the future. After the past two days, it has become apparent that only COGT, a stock I am long, CWT, and HTX are the only stocks that still have that beautiful green to max green BOP, strong accumulation, and price above the 50 day moving average. This is such a low amount of possible future longs that I am just amazed that this can actually be happening.
The good news on the other side of this is my shorts and those great returns they are giving me. The only problem is that I did not have the time or the “near-perfect” setups to help me get more than 20%, on margin, short. Other subscribers with more guts than me have gains between 60% and 120%. Axman, Wutan, Author Ego, Mjjacobs, and myself all have strong gains of at least 30% and I have many other members with gains or small losses. Axman is by far the greatest of the great and that should be no surprise to those that know that he has been around since 1987. That kind of experience, as you can tell, has paid off.
