Sell Bias In Effect.
Friday’s steep sell off on heavy volume reeks of institutional dumping. That’s two days of distribution in a row for the S&P 500 and Dow 30. You should have been aware.
The technical picture remains that of a pullback, technically. Though the type of momentum this type of heavy selling triggers will likely see a test back below the 2100 mark on the S&P 500, back to the base it formed over the last year with that same mark as its high.
September is traditionally a volatile month. The deck is in the midst of being reshuffled now that the big fund managers are back from summer break.
Bullish or Bearish: The question is what’s the trend to emerge this fall.
Tech (XLK) will likely resume its leadership role should the Bull regain its footing.
Financials (XLF) looks to be another leadership contender as banks look to boost profits on higher rates expected to come in play over the next quarters.
A close watch not the following produced by this week’s standard scan will be a revealing sign of strength or weakness. The list is cut down from last week due to issues falling below their one of the major moving averages.
| Ticker | Company | Industry | Country |
|---|---|---|---|
| ALGN | Align Technology Inc. | Medical Appliances & Equipment | USA |
| AM | Antero Midstream Partners LP | Oil & Gas Pipelines | USA |
| ANET | Arista Networks, Inc. | Diversified Computer Systems | USA |
| APO | Apollo Global Management, LLC | Diversified Investments | USA |
| ARIA | Ariad Pharmaceuticals Inc. | Biotechnology | USA |
| BETR | Amplify Snack Brands, Inc. | Food – Major Diversified | USA |
| ESNT | Essent Group Ltd. | Mortgage Investment | Bermuda |
| EXEL | Exelixis, Inc. | Biotechnology | USA |
| GIMO | Gigamon Inc. | Networking & Communication Devices | USA |
| LGIH | LGI Homes, Inc. | Real Estate Development | USA |
| MBLY | Mobileye N.V. | Application Software | Israel |
| MIDD | Middleby Corp. | Diversified Machinery | USA |
| MKTX | MarketAxess Holdings Inc. | Investment Brokerage – National | USA |
| NLS | Nautilus Inc. | Sporting Goods | USA |
| NTES | NetEase, Inc. | Internet Software & Services | China |
| PAYC | Paycom Software, Inc. | Application Software | USA |
| RTRX | Retrophin, Inc. | Drug Manufacturers – Major | USA |
| TREE | LendingTree, Inc. | Mortgage Investment | USA |
| TSEM | Tower Semiconductor Ltd. | Semiconductor – Integrated Circuits | Israel |
| UBNT | Ubiquiti Networks, Inc. | Wireless Communications | USA |
Stay tuned,
Dan