Tuesday, October 11, 2005

More late-day selling

See why I distrust bounces at the open? Once again, the market closed down for the day after late-day selling surfaced. The S&P 500 has declined in 6 out of the last 7 days. That's one dubious streak. I actually started doing some nibbling today, given that we are overdue for a bounce. But then again, I have been saying that for a few days.

Volume rose today on both exchanges, making it another day of distribution. That's quite a few days of distribution this month alone. The CBOE put/call ratio ran well above 1.0 most of the day, a good contrarian sign.

After the close, MDT raised earnings guidance, and AMD reported great earnings. The latter should help the semis bounce tomorrow. AAPL has not reported yet, but the numbers are due out shortly.


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