Blue Monday, that seems like the theme lately, almost every Monday has been a down day as far as I can remember (my memory is short thoughJ ). The good news is that this is not a panic selling, the volume is low, as matter of fact, many leading stocks remain positive today or down with reduced volume. It seems to me that today’s action is more of profit taking than anything else.
One lesson we should learn is that if everyone sees the trade, for example, higher dollar, lower oil, then the trade probably is too late. Fortunately, USO is not for short in my broker, so, I was lucky enough not to explore the trade.
The steel, coal and fertilizer showed some life, there is trepidation, it seems, as volume was on the light side, so, it is hard to say that a new trend is forming, not yet at least.
The solar sector, except LDK, was mostly down too, this is a little count-intuitive since energy become expansive.
It is hard to tell where the market’s next move will be, but I am somewhat encouraged by the fact that the volume is low and SP500 tried hard to stay above 1400 level, who knows what we will see tomorrow, maybe we will see an up day.
Good luck
