Jerry Samet
02-10-2022, 06:47 PM
True to its recent nature the market reversed yesterday’s gains and sold off hard. The major averages opened lower and after a rally attempt where they reached slightly positive levels the selling came back and lasted into the close. All the major averages finished near their intraday trading lows. The Nasd averages were weakest as the COMPQ and the NDX lost 2.10% and 2.33% respectively. The SPX declined 1.81%. Volume was higher across the board. It gained 9.67% on the Nasd and 23.96% on the New York. This, combined with the price declines, was enough to produce distribution days on all the major averages. Leading stocks were lower as well with the leaders index falling by 2.00% on the day. The index closed low in its trading range on higher but still below average volume. The CPI report came in higher than expected and that caused early selling. There was an attempt to regain lost ground but it didn’t hold. The market completely reversed yesterday’s positive action and the follow through like day was lost. The higher volume showed that large institutional players were selling stocks heavily today, not a good sign. This rally has been struggling since it started on 1/31 and recent action doesn’t improve the picture. Yesterday’s trading made it look like the market might try to stage some upside action, but today that hope was pretty well dashed. The picture doesn’t look to bright and a good sized cash position is a prudent move. Jerry