Plunge Continues

The bears resumed the attack on friday as most of the indices closed near the lows of the week. Regardless of the reason, whether it be fears of recession, global slowdown, or carry trades unwinding, the bottom line is price is falling across the board. Watch the charts and ignore the chatter. While the indices can expect a bounce soon, it may still be a few days away. Looking back at the start of the May decline, the indices dropped about 12 days without any sort of bounce. We are only 5 days into this leg down if you count Monday. Here is a chart showing the May drop on the Q's.


While we could bounce sooner then that, I don't expect anything more then a small retrace. There were too many people hurt with this drop, and it will take time to heal those wounds.

I'm looking to short this market, but it is difficult to find weak stocks that haven't run away yet. I don't like picking tops in strong stocks, so I am looking for stocks that tried to bounce back but are falling under their own weight. UTEK, NVLS, and IT come to mind. I'm also looking at stocks like UA, CHS, PSS, and AEOS in the retail sector for weakness. Sorry for the lack of charts again, but my free time is all tie up with a couple projects I am working on.
Good Luck,


DT