Big Red Finger

Sell Bias In Effect.

sc

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