As January goes, so goes the rest of the year. Or so adage goes. I have never tested this hypothesis nor do I remember any other tests (I am sure they exist), but if yesterday's trading action is any indication it will be a tough year for the bulls if the weakness persists. That all said, I believe in none of that hocus-pocus and will continue to watch the price and volume levels to discern the overall supply/demand balance in the market. Yesterday, without a doubt, was a distribution day, with the market losing about 90 basis points of value of declines across all sectors.
Supply ruled the day in yesterday's trading and no nascent sign of demand was present. That said, overall volume levels were relatively tame and price spread was nonexistent. The sell-off may indicate something more, but without corroborating information, I have to chalk it up to noise for the moment.
Supply ruled the day in yesterday's trading and no nascent sign of demand was present. That said, overall volume levels were relatively tame and price spread was nonexistent. The sell-off may indicate something more, but without corroborating information, I have to chalk it up to noise for the moment.
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