Friday, November 30, 2012
Stock Market Commentary:
Monday-Wednesday’s Action: Fiscal Cliff Drama Dominates The Headlines
Thursday & Friday’s Action: Fiscal Cliff Drama Continues
Market Outlook: Downtrend
From our perspective, the market is in a clear downtrend and it is encouraging to see that the major averages are down less than 10% from their 2012 highs. On October 9, we said “the rally was under pressure” and then said the “rally was over” on Oct 19. Since then, stocks have gone straight down and a lot of technical damage has occurred. We will turn more bullish once the major averages confirm a new rally attempt and then trade back above their respective down trendlines and 50 DMA lines. As always, keep your losses small and never argue with the tape.