Market “noisy,” but now negative/mixed
Last week’s market weakness is reflected in the now negative/mixed trend pictures for the major market indices and sectors. The number of identifiable trends however remains low (and has shrunk further for most of the major indices), reflecting the current high level of “noise” in the market action.
Sentiment levels are still bearish (which is a positive), and many market participants are expecting a down September (another “positive” sign). On the other hand, the technical picture picture remains mixed, and does suggest that the August lows will likely be revisited at some point. Bottom line: if the market goes up in the short term, I’ll be inclined to sell; if it goes down, I’ll be looking to buy (selectively).
New positions
No new positions this week.
Watchlists
Stocks of interest showing up on this week’s “upside strength” scans include Air Products & Chemicals (APD), Cisco (CSCO), Newmont Mining (NEM), New York Community Bancorp (NYB), and Solectron (SLR).
New candidates of interest on the “oversold” scans include ABM Industries (ABM), American Standard Companies (ASD), Avon Products (AVP), Black & Decker (BDK), Estee Lauder (EL), and Limited Brands (LTD).
