Remember the old Dirty Harry line, "Do you feel lucky punk." I do not feel lucky about Friday. There were too many negative headlines today and too many sectors and indexes suddenly taking a breather. We need for the market to pause and maybe today was the beginning.
Market internals reversed to negative and new 52-week lows were the most since December 22nd. The market shook off some worries about the potential tax cut being delayed until Q4 and new comments on the border adjustment tax showed it was not dead. The Nasdaq composite fell -52 points at the lows before recovering half of that loss thanks to the strength in the Dow.
However, while one day does not make a trend, we should pay attention when the current bullish trend appears to lose traction. This may have been just a one-day event but S&P futures are down -3 points and the tax cut delay chatter is all over the news. With the State of the Union speech on Tuesday, we could see some investors move to the sidelines before the weekend. There is no reason to add new plays today. If the market moves higher, we already have longs. If the market rolls over there is no reason to add one more play just to be stopped out.
NEW BULLISH Plays
No New Bullish Plays
NEW BEARISH Plays
No New Bearish Plays