Clear Distribution, or institutional selling, turns us into Bears.
Going into Thursday we were on the cusp of shifting our Buyer’s Caution as key sectors continued to lose ground.
No time to wonder how or why things turned bad. It pays to be flexible in this business. That’s how we preserve capital.
In response to our shift in bias we’ve added CUZ, SPN and CHS to our short positions, which already included TEX.
Early in the week we saw warning signs from recent breakouts of top Growth Stocks, such as MELI, LULU, ULTA and DECK, to name a few, which failed to hold high ground.
Consumer Discretionary stocks (XLY) are leading the downside action as the ETF comes within a shade of a new low for the year. Meanwhile, the Consumer Staples (XLP) are showing relative strength, though the ETF is clearly trend-down under its 200-day moving average.
Elsewhere, it’s pretty much the same, with the exception of some drug stocks, like JNJ, MRK and BMY, which eked out gains Thursday.