The major stock indexes traded back and forth the unchanged level today, with modest losses going into the close run on lower volume.
Officially, the Dow Industrials fell 0.2% on NYSE volume of 4.9 billion shares, while the NASDAQ dropped a scant 0.1% on 2.0 billion. The leadership profile remains mildly positive, with 113 stocks making new highs versus 73 making new lows.
The short term momentum oscillators remain negative, confirming the bearish stance of the AlphaKing Trading Indicator. We have no new trades at this time.
Nothing happened of note today as the world remains in limbo awaiting the decision of the EU as to whether or not they will back a bailout of the Greece debt debacle. Such a decision could come as early as tomorrow, and could go either way. Technically, sideways action changes nothing, and the stock market remains in the prime crash position, deciding if it wants to pull-off a short term reprieve by rallying to test the 50 day moving averages (blue lines in charts below.)
Chances remain very high that we will eventually see a hard break of the 200 day moving averages (purple lines in charts below) before a more lasting bottom has a real chance of landing, though what happens in the short term is anyone’s guess, as no one knows for sure whether German and French politicians have the nerve to use their precious tax dollars to fund Greece’s social programs, versus them having the nerve to face the consequences of saying no. Either way, the remainder of the week should be very volatile.
401K investors should be fully invested in a money market fund.
The Index portfolio is 1/2 invested in the inverse ETF QID, which gives us a 100% exposure to the short side. We have adjusted the purchase price to represent both the initial ¼ investment ($20.89) and the new 1/4 investment ($21.14) yielding an average entry prices of the two of $21.02.
Kevin Wilde, Chief Trading Strategist AlphaKing.com.
