PRE MARKET

The trees: Markets are very near term oversold. Almost 1,000 DOW points in less than 2 days will do the trick. A bounce can occur at any time. It will be random. It  could be on a gap or it could come out of nowhere in the middle of the day.

The forest: Most everything has turned down. The DOW and S&P now join the rest below the 50 day moving average….which means we were able to take many more names off our front screen as a bunch of names also broke the 50 day. The TRANSPORTS are nearing support that has held twice in recent month.

Go slow. Let things play out. Leadership was defensive before this month. the NEW YEARLY HIGH LIST has almost nothing on it. A couple of HOUSING names and a few other defensive names.

Don’t rationalize why. Pay attention to price.

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